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YouTube Transcript/The ONLY Trading Guide You’ll Ever Need (Full 10+ Hour Course)

Transcript of The ONLY Trading Guide You’ll Ever Need (Full 10+ Hour Course)

Emmanuel Malyarovich

0:00Welcome, ladies and gentlemen, to my 0:02free 10 plus hour trading course. And 0:04this is a special moment for me because 0:06what you're about to watch is something 0:09that I've spent hundreds of hours 0:11building [music]0:11over the past several years. This isn't 0:14a quick upload or a repackage tutorial.0:16This is the most complete beginner to 0:19advanced day trading education that 0:21[music] you will ever watch. And I am 0:23posting the entire thing on YouTube 0:25completely for free. And I say this with 0:28full confidence. My free course is 0:30genuinely better than most paid courses 0:32on the internet. And I'm not just saying 0:34that because it sounds good. I'm saying 0:36that because over 60,000 students have 0:39gone through my free course, applied it,0:41and they told me that it changed the way 0:43that they trade. Thousands of them 0:45became profitable traders for my free 0:47course alone, and many of them told me 0:49it was far more valuable than any $500,0:52$1,000, or even $5,000 program they 0:56bought from another guru. This video is 0:58special because it represents years of 1:00hard work, years of charting,1:02experimenting with trades, taking 1:04winning trades, taking losing trades,1:07losing money, making money, and reverse 1:09engineering everything that a beginner 1:11needs to know to finally become 1:13profitable. And for the first time ever,1:16I'm making it available for the entire 1:18world. And I want to tell you why. My 1:20name is Emanuel and 5 and a half years 1:22ago, my father taught me how to trade.1:24He was my trading mentor. And without 1:26him, I would not be a profitable trader 1:29today. And everything I teach in this 1:31course, every single concept came from 1:34the foundation he gave me. My goal is to 1:37now continue his legacy and lead the 1:39next generation of profitable traders 1:41the same way that my dad mentored me. My 1:44free course covers absolutely 1:46everything. It covers the basics. It 1:48covers the fundamentals of price action,1:50strategies, support and resistance, how 1:53to use indicators, how to scan, trade 1:56management, trade psychology, how to 1:58scalp. Literally everything that you can 2:00think of is included in this course.2:02This is truly the final blueprint that a 2:05beginner needs in order to finally 2:07become profitable and remove all of the 2:09guesswork from their trading. And I 2:11truly believe no other trader on YouTube 2:14has released something like this 2:16completely for free. Not at this depth,2:19not at this level, and not at this 2:21quality. And that's why I'm so excited 2:23that you're here today. So, if you're 2:25serious about becoming a profitable 2:27trader, and you're tired of being 2:28confused, you're tired of being 2:30inconsistent, and you're tired of 2:32piecing together concepts from random 2:34YouTube videos, I want you to lock in. I 2:37want you to be distraction-free. I want 2:39you to take notes and I want you to 2:41focus on everything that I'm going to 2:43teach you in this free 10 plus hour 2:45course. And if you do, you will be 2:47unrecognizable as a trader by the end of 2:50it. It's crazy because this free course 2:52genuinely means so much to me. It's a 2:55symbol of my hard work over the past few 2:58years and I am confident it'll be the 3:00most impactful trading video that you 3:02will ever watch. And before we get 3:04officially started with the course for a 3:07better viewing experience, my free 10 3:09plus hour course is also in my free 3:11private community where I'm going to be 3:13sending you way more other free 3:16resources such as frameworks to build a 3:18trading plan, PDF documents of the 3:20concepts that I talk about in the 3:22course. I even do free bi-weekly live 3:25training. So to get access to my private 3:28community, which like I said is 100%3:30free, you can go to the description of 3:32this video. you'll be able to click on 3:34the link and you'll also be able to 3:35watch the free course there and get 3:37access to all of those free materials.3:39By the way, my goal is to be as 3:41transparent and as real as possible 3:43because I think that is something that's 3:45severely lacking in the trading space.3:47And over the past 12 to 13 months, from 3:50November 1st of 2024 to November 29th of 3:532025, which is today, I've made over 3:55$559,000 3:57in day trading profits, which is a 4:00cumulative rate of return of over $372%4:03on my entire trading account. This is my 4:06Charles Schwab brokerage login. I use 4:08Think or Swim platform. And if you're 4:10thinking this is a screenshot that I 4:12edited or if this is Photoshop, I will 4:14go ahead and refresh the page. And if I 4:16do that over the past one year exactly,4:19actually, I've made over $481,000.4:22And if we go back to the same dates that 4:25I showed you before of November 1st of 4:282024, there's the $559,000.4:31I actually had a really good November in 4:342024. And I'm also happy to show you my 4:38personal brokerage statements as well.4:40This is from 2025. And I started the 4:43year off in January with a really good 4:45month. I cleared over $53,000.4:48And then we had the whole tariff 4:51situation where the market dropped over 4:5320% and I actually had my best month of 4:56the year where I made just about $69,000 4:59in February. And March was also a nice 5:02month. It's going to show that I lost 5:04money in March. My change in period 5:06balance is negative3,000. However, I 5:09withdrew $47,000 from my account that 5:12month. So, I actually made $44,000 5:16in March, which was also a nice nice 5:18month. And my slowest month of the year 5:21was actually in June where I only made 5:23$10,850.5:25And that is because I was in Europe and 5:27I only traded about 20 to 30% of the 5:30time. You know, everyone has to take a 5:32vacation. So, I was mostly in Europe. I 5:34went to Barcelona, Portugal, Amsterdam,5:36and London. I did some trading on the 5:38side and ended up making a little bit 5:40more than $10,000. And I'm also happy to 5:43show you the other months as well. It 5:46was overall a super green year. Every 5:48single month was green for me. I did not 5:51have a single negative month this year.5:52And I'm really looking forward to 5:54continuing that trend into 2026. And 5:57yeah, the reason I'm showing you this is 5:59to be transparent and to show you that I 6:01actually make money with trading. I do 6:04this for a living. This is my passion.6:06This has been my career for over 5 years 6:08and everything that I'm going to teach 6:10you in this free course I personally use 6:12on a daily basis to make money. Let us 6:15begin this free course by talking about 6:18the fundamentals of trading. Let's talk 6:20about the basics. And let us first 6:22define what trading actually is. And 6:26trading is when you're buying and 6:28selling a financial asset. Whether it's 6:31a stock or a crypto or it's gold or 6:33silver or oil or wheat or it's an 6:36options contract. You're buying and 6:38selling a financial asset based on 6:41technical analysis and price action.6:44This should not be confused with 6:46investing. I see a lot of people confuse 6:49the two. A lot of people think that 6:51trading is investing. It is not. As 6:53investors, we try to determine the 6:56intrinsic value of the asset that we're 6:59looking at. And based off that intrinsic 7:01value, we can determine whether the 7:03asset is overvalued or undervalued,7:07right? And in order to figure out the 7:09intrinsic value, most of us look at the 7:12financial documents of a company. We 7:14look at balance sheets, income 7:15statements, we're looking at industry 7:18trends. We're looking at the news. We're 7:20reading analyst reports. We're 7:21understanding the cash flow the company 7:23has. We're understanding the assets 7:25that's on the balance sheet. We're 7:27looking at the fundamentals of the 7:29company and or of the asset that we're 7:31analyzing. And based off those 7:33fundamentals, we determine is it 7:35overvalued or undervalued. Right? When 7:38you think of investing, you should think 7:39of Warren Buffett. What he does is 7:42invest in companies long-term and that's 7:44how he makes his money. He is not 7:47trading. When you are trading, you are 7:50solely looking at price action. You're 7:52not looking at any financial documents 7:54or news or fundamentals or anything. We 7:57solely look at the price action. And in 8:00this course, I'm going to dive really 8:03deep into what price action is. And 8:05there's going to be other videos that go 8:07over company fundamentals and investing 8:10and the real differences between 8:12technical analysis and fundamental 8:13analysis. But a short little summary,8:17price action is the study of how prices 8:19move. And what we do as traders is we 8:22analyze how prices have moved in the 8:24past. We analyze what prices are doing 8:27right now, how they're moving currently 8:29to analyze, to speculate, and to 8:32ultimately make money on what prices are 8:34going to do in the future. That's what 8:36we focus on as traders. We focus on 8:38technical analysis and price action.8:41That is it. A question that I get asked 8:43all the time is, is trading gambling?8:46And in order to answer this question, we 8:48need to define what gambling is? And by 8:51definition, gambling is betting on the 8:54uncertain outcome of a future event.8:57Meaning, you don't know what's going to 8:59happen in the future, and you're betting 9:01that prices are either going to go up or 9:04prices are going to go down. By 9:06definition, trading is gambling.9:09However, the connotation around gambling 9:12is that it's impossible to become 9:15successful as a gambler, I guess. And I 9:18don't really like to call trading 9:20gambling. I think trading is really 9:21similar to poker or blackjack in 9:24casinos, where if you're a really good 9:26poker and blackjack player, if you 9:29understand what you're looking for, if 9:30you have an actual edge, you're going to 9:33make money. And the same thing applies 9:35for trading. And in trading, just like 9:37in blackjack, we shift the probabilities 9:41of the trade in our favor by developing 9:45what is called an edge. And you've 9:47probably heard that before. Every trader 9:50has his or her edge. And more likely 9:53than not, you have multiple edges that 9:56make you a profitable trader. So, let's 9:58define what an edge is. That is a 10:00statistical or behavioral advantage in 10:03the market. An edge is an advantage.10:05It's something that makes you better 10:08than other traders who are unprofitable.10:11It's the reason why over hundreds of 10:13trades, you're going to make more money 10:15than you lose. You have to understand 10:17that an edge, a statistical advantage is 10:20played out not over five or 10 trades.10:23It's played out over thousands of 10:25trades. And that's why it's so important 10:27to develop a sample size for your 10:30trading so you can actually extract data 10:32and then use that data to refine and 10:36build your trading plan which by the way 10:38I'm going to cover all of this later on 10:40in the course. Okay. So you need to 10:43focus on building an edge and that edge 10:46is going to make you money longterm 10:49after you take hundreds and hundreds of 10:51trades. So very good. So, is trading 10:54gambling? You could call it gambling 10:56because you're betting on an uncertain 10:58outcome of a future event. You don't 11:00know if prices are going to go up or 11:01down and you're betting on that price 11:04are going to go up by going long or that 11:06prices are going to go down by going 11:08short. And the way you shift the 11:10probabilities in your favor is by 11:12developing an edge. So, that begs the 11:14question, what types of edges even 11:17exist? And there's a bunch of different 11:19edges. Number one, technical edge.11:22Technical edge is an edge when it comes 11:24to reading the price action, mastering 11:27the chart setups, understanding the 11:29relationship between the buyers and the 11:31sellers, understanding volume,11:32understanding support and resistance,11:34understanding what separates a 11:37highquality setup from a lowquality 11:39setup, understanding how to calculate 11:41reward to risk. So, you're only picking 11:43the setups that have a high likelihood 11:46of making you money. There's also a 11:48psychological edge. This is a trader 11:51that's able to control his or her 11:52emotions. They're able to stay 11:54disciplined and they're able to execute 11:57on their plan when even when it feels 12:00uncomfortable. And this is when you're 12:02able to control yourself. You're able to 12:04also control your impulses and you're 12:06able to consistently follow your plan 12:09without having your emotions impact you.12:11Next, we have a riskmanagement edge. And 12:14there is a really kind of funny 12:16expression that I've heard in trading,12:18and you'll have to excuse my French, but 12:21most traders eat like birds and 12:24like elephants. And essentially what 12:27that means is a majority of traders 12:29don't make much money on their winning 12:31trades when they're right, but they lose 12:34a lot on their losing trades when 12:36they're wrong. And as a trader, you want 12:39to reverse that outcome. You want to be 12:42capitalizing heavily on the trades where 12:45you are right. On the winning trades,12:47you want to be making a disproportionate 12:49amount of money. And then on your losing 12:51trades, you want to focus on limiting 12:54your losses. And that's the 12:56riskmanagement edge. And I'll tell you 12:58straight up for me, the reason I am such 13:00a good trader today, I am really good at 13:03risk management. I rarely have losing 13:06weeks. I've never had a losing month in 13:09my entire career. Of course, I have 13:11losing days, but I'm really good at 13:13limiting my losses on my losing trades.13:16And I'm very good on capitalizing on my 13:18winners, but specifically I'm really,13:20really good at managing my losses. I'm a 13:23really good loser, and that's what makes 13:25me a really good trader. Now, of course,13:26I do have the other edges as well, but I 13:29would say my riskmanagement edge is 13:31probably the most important edge in my 13:33own trading. And a lot of the times you 13:36could have an excellent strategy, you 13:38could be an excellent trader, but if 13:39your risk management sucks, you're never 13:41going to become profitable, right? Your 13:43first priority as a trader is to 13:45actually preserve the capital in your 13:47account. You'll learn about that later 13:48in the course. Number four, execution 13:51edge. This is the edge where you have a 13:54really good trading plan. You are very 13:57good at reading price action. You're 13:59good at identifying high quality setups.14:01You're good with the risk management,14:02but you're also excellent at executing 14:05it and being able to actually make money 14:08off of your trading plan in real time.14:10You know how to quickly execute on your 14:12platform and get out of trades really 14:15quickly, enter into trades really 14:16quickly. You're able to manage trades in 14:19real time without making emotional 14:21decisions. And it's your ability to act 14:24on your plan without hesitation. And in 14:27this course, by the time this video 14:29ends, you will know exactly how to turn 14:32every single one of these edges that I 14:34just talked about into a system. You're 14:37going to learn the specific details that 14:40you need to know to master every single 14:42one of these edges. So hopefully it can 14:44transform the way that you trade 14:46forever. And that's exactly why I 14:47created this free course, to give you an 14:49edge in your technicals, with your 14:52psychology, with your risk management,14:54and with your execution. Let's go over 14:56the different types of markets that you 14:58could trade in in 2026. And for me 15:00personally, I day trade stocks. I don't 15:02trade crypto. I don't trade forex. I 15:04don't trade futures or options. I am day 15:07trading stocks only. And I trade small 15:10caps, midcaps, large caps. I even trade 15:12penny stocks. And I personally trade on 15:15a margin account. Now, the one thing 15:17about trading on a margin account is 15:19that the PDT rule is going to apply. In 15:23the PDT rule, the pattern day trader 15:25rule, it requires you to have at least 15:27$25,000 in your margin account if you 15:31want to take more than three trades per 15:33week. If you have less than $25,000 in 15:36your margin account, then you're limited 15:38to only three trades per week. Now, the 15:41reason why a margin account is so useful 15:43is number one, on a margin account, I 15:45can go long and I can go short. on a 15:49cash account, which is a very common 15:50alternative. You cannot go short on a 15:53cash account. And there are also other 15:55limitations that I'm going to talk about 15:57later in this free course. And with a 16:00margin account, you also have access to 16:034x additional um intraday buying power.16:07What that means is if I have $25,000 in 16:10my margin account, I could day trade 16:12with $100,000 worth of capital. If I 16:15have 30K in my account, I could trade 16:17with $120,000 16:19worth of capital. And you might think 16:22that's really risky. Or maybe you're 16:24associating the word margin with someone 16:26that you know who lost a lot of money.16:29But margin is only risky if you don't 16:31know how to control your risk. If you 16:33just yolo every play, you have no idea 16:35what margin is. You don't know how to 16:36size your positions. Of course, it's 16:38risky. If you don't know what you're 16:40doing, yeah, trading is going to be 16:41risky. Anything is going to be risky if 16:43you don't know what you're doing. You 16:45can't imagine driving a car without 16:48knowing how to drive, right? Obviously,16:50that's going to be risky, but that's why 16:52you learn the proper precautions. You 16:54learn how to drive a car effectively and 16:56that's when you go out on the highway,16:57right? So, same thing with trading.16:59There are ways to minimize your risk and 17:02for you to control your risk, which is,17:04you know, that's exactly why you're 17:05watching free course. I'm going to teach 17:07you how to do that. Now, I personally 17:09trade on a margin account because I'm 17:12able to take more than three trades per 17:14week. And of course, I have way more 17:15than $25,000 in my account. How However,17:18when it comes to how much money you need 17:20to start day trading, you only need 17:22about 25,000. In fact, I would probably 17:25add a little bit just to have a buffer 17:27because if you go below 25,000, even if 17:30it's 24,999,17:33you'll be below the 25K and you'll be 17:35limited to three trades per week. So,17:37I'd recommend having maybe 25,500 in 17:40your account or 26,000 or 27,000 just so 17:43you have a small little buffer so you're 17:45not constantly worried that your account 17:47balance is going to fall below $25,000.17:50I also think that day trading stocks,17:52what I do, it's a lot easier and more 17:55straightforward to manage your risk. In 17:57fact, I think it's overall way more 18:00beginner friendly than trading options 18:02or futures or even crypto. I really 18:04think day trading stocks is the most 18:07beginner friendly and it's the easiest 18:09to actually control your risk as long as 18:11you know what you're doing. Okay, number 18:14two, crypto. This is when you're trading 18:16Bitcoin or altcoins such as Ethereum,18:19Salana, or other coins. With crypto, you 18:22could use actually an insane amount of 18:24leverage. There are some platforms that 18:26allow you to trade with up to 200x 18:29leverage, which is just insane. Um, I 18:32don't really recommend day trading 18:34crypto. I think it's way better for 18:37swing trading. Now, the thing is with 18:39crypto, it's a 24hour market. And what I 18:42don't like about trading in a 24-hour 18:44market is that I really like that as a 18:46day trader, the stock market closes at 18:49400 p.m. Eastern. Meaning once 4 p.m.18:52hits, the market's closed. I can't trade 18:53anymore. And I like that. I like, you 18:57know, once 4 p.m. hits, I'm out of all 18:59my positions as a day trader. I don't 19:01have to worry about overnight risk. I 19:03don't have to worry about, oh, well, you 19:05know, where's my stock opening at the 19:06next morning, am I up or am I down? I 19:08don't worry about that. 4 p.m. hits, I'm 19:10done with the day, and I don't think 19:12about trading unless I'm journaling or 19:14reviewing my trades until the next 19:15morning, which I like that. With crypto,19:18it's a 24/7 market. So, you might be 19:21waking up in the middle of the night and 19:22checking on your positions and just 19:24constantly being stressed because 19:25there's crazy fluctuations in the crypto 19:28markets. I don't like that. Okay? I like 19:30trading in a market that closes at 4 pm 19:32Eastern. Okay. However, you know,19:35there's a lot of volatility in crypto. A 19:36lot of traders do like that. What I 19:38don't like about crypto as well is that 19:40during slower times like during bare 19:42markets or where or when the market's 19:43not doing anything or when Bitcoin is 19:45just chopping around, right, volume can 19:47kind of dry up and it can be pretty 19:49slow. So, yeah, crypto is a whole 19:52another animal. I personally like day 19:54trading stocks, but I do invest in 19:56crypto. I'm a big big believer in 19:58Bitcoin and Ethereum long-term. Next,20:00futures. I'll be honest with you guys, I 20:02don't have a lot of futures experience,20:04but that's like trading NQ, ES, oil,20:06gold, and other leveraged instrument 20:08instruments. Um, it's very prop firm 20:10heavy. A lot of people who trade futures 20:13use prop firms, which I'm also going to 20:15cover in this course. And I think 20:17trading futures, it's easier to scale 20:21your profits once you're really good at 20:24trading futures. However, it's there's a 20:28lot more of a learning curve to get 20:30started because I think it's a lot 20:31harder to manage your risk with futures 20:33compared to day trading stocks. And 20:35that's why I recommend for most 20:37beginners to just, you know, start with 20:39stocks and later on you can move on to 20:41futures. And yeah, I mean, I think I 20:45don't have much experience with it. So,20:48you could still apply a lot of my 20:49education that I teach in this course 20:51towards futures. I just don't personally 20:52trade it. Uh, forex, never trade forex.20:56Never will. I think it's a really 20:58heavily manipulated market. I just don't 21:00recommend trading forex. Why would you 21:01trade forex when you could trade, you 21:04know, stocks or futures or crypto? Just 21:06stick to those. Personally, I day trade 21:08stocks. But it doesn't matter. You could 21:10apply everything that I teach in this 21:12video towards all markets. So, if you 21:14want to use my education for futures,21:17great. You can do that. You want to use 21:18it for crypto, great. You could do that.21:20For stocks, fantastic. That's exactly 21:22what I trade. Even if you want to trade 21:24forex, no problem. You can still use all 21:27of these principles and fundamentals and 21:29price action concepts that I'm going to 21:31teach for your trading. Let's go over 21:33the tools, software, platforms that you 21:36need in order to trade. And I actually 21:38have personal experience with a lot of 21:40the platforms I'm going to talk about.21:42So, I'm going to give you my honest 21:43opinion. Number one on my ranking is 21:45Think or Swim by Charles Schwab. This is 21:48actually the platform that I personally 21:50use for my own day trading. And whenever 21:53you're creating a Schwab account, make 21:55sure you enable margin and you enable 21:57think or swim access when you are 22:00applying. And let's go over the pros 22:03first. Number one, the execution is 22:05overall really good. It's a great 22:07platform to scalp stocks on. You know,22:10of course, every platform is going to 22:12have delays and it's going to be slow 22:13from time to time, but overall, Think or 22:15Swim is consistently fast with the 22:18execution, and I think the platform 22:20overall is actually pretty intuitive. At 22:22first, it's going to seem really strange 22:25because it looks a lot different than 22:26other trading platforms. However, once 22:28you get the hang of it, it's super 22:30intuitive. I really like the charting.22:32It's great for shorting, has a really 22:34good hard to borrow list, and the hard 22:36to borrow fees aren't too expensive. So,22:39you have a lot of different options when 22:41it comes to shorting stocks. Um, and 22:43it's available internationally, right?22:45It's available almost everywhere around 22:47the world. In Europe, it's available in 22:49South America. It's available in certain 22:51parts of Asia. It's available in certain 22:53parts of the Middle East. So, if you're 22:55watching this and you're not from the 22:56United States, I would just do a simple 22:58Google search, look up, is Schwab 23:01available in my country and if it is, go 23:04to the Schwab international site and you 23:06should be able to find your country and 23:08you'll be able to apply for an account.23:11And overall, I love using Thinkorswim.23:14Another huge pro is they have excellent 23:16price improvement and that's when they 23:18give you a better fill than you were 23:21supposed to get on your trades, which 23:23could be a massive edge on some of your 23:25trades. So, the price improvement is 23:27excellent as well. I would say the 23:30biggest con is the fact that the paper 23:33trading platform has limitations. So, if 23:36you're a beginner and you don't want to 23:37jump into real money right away, you 23:39want to paper trade first, the paper 23:41trading platform honestly kind of sucks.23:43there's huge delays. The execution isn't 23:46good. The fills aren't good. So, that's 23:49the one con I would say. Funny enough,23:51all those delays that exist with paper 23:53trading, they don't exist with real 23:55money. And in fact, it could even be 23:57looked at as a pro because I've actually 24:00had students that paper traded on Think 24:02or Swim for a few months. They became 24:04profitable paper trading. And once they 24:08transitioned into real money, they 24:09actually performed even better with real 24:12money because paper trading on Thinker 24:14Swim is almost like trading on hard 24:16mode. It's like playing Mario Kart on 24:19max difficulty where it's super super 24:21hard, right? Um but then once you go to 24:23real trading and you don't have those 24:25same delays and you actually have really 24:27good execution and good fills, trading 24:29feels a lot easier. So, it's kind of 24:31actually a good thing where you can kind 24:32of trade on hard mode as a beginner and 24:34then when you go to trading with real 24:35money, it feels a lot easier 24:37execution-wise. So, I highly recommend 24:40Think or Swim. I don't even have an 24:42affiliate link. I'm just recommending 24:44what I personally use. Next is Trade 24:47Station. I used to use Trade Station 24:49back in the day. Trad Station is solid.24:52I would say it's just a worse version of 24:55Think or Swim. The execution is actually 24:57great. The platform can be a little bit 25:00glitchy when it comes to charting, but 25:02overall it's actually really similar to 25:04Think or Swim. It's a great platform.25:06The biggest con for me personally is the 25:08fact that the short list is limited. You 25:10can't short as many stocks on Trade 25:12Station as you can on Think or Swim. And 25:15locating shares can be super annoying.25:19So, if you're choosing between Trade 25:21Station or Think or Swim, I would just 25:22use Think or Swim personally. Now, let's 25:25go over Weeble. I've never used Weeble 25:28actually. However, I've had students 25:30that have used Weeble. It's a pretty 25:32good platform execution-wise, but 25:34similar to Trade Station, the short list 25:36is limited. I don't think they really 25:38have that good of price improvement. And 25:41the customer service is non-existent.25:43Okay? So, if you're stuck in a trade and 25:45you want to call their front desk, no 25:46one's going to pick up. Yeah. This the 25:48customer service just isn't good. So 25:50between Weeble Trade Station and Thinker 25:54Swim, I would obviously use Think or 25:56Swim, but Weeble is still a solid 25:58option. Interactive Brokers, it has 26:00commissions. So if you're in a country 26:03where no other, you know, you don't have 26:06access to any of these other platforms 26:07and Interactive Brokers is fine.26:09However, it has commissions and I know 26:11the platform isn't very intuitive. Uh,26:14next we have Lightseed and there's a 26:15bunch of platforms similar to Lightseed 26:18also like Cobra Trading and the only 26:21issue with Lightseed is that they have 26:23big commissions but you know the 26:26execution on Lightseed is amazing. So 26:29the execution is amazing and I think 26:31it's actually pretty complicated for a 26:32new trader. That's another con. And you 26:34could also customize your routing on 26:36Lightseed. So, I would say if you're a 26:37trader who's trading massive size, where 26:41you don't really care about paying 500 26:43to 2,000 a day in commissions, you're 26:45trading massive size, you're going for 26:4720, 30, 40, 50k days, light speeded is 26:50probably your best option. However, the 26:52commissions are super rough, but the 26:54execution is excellent. So, that's what 26:57I would recommend. Personally, I would 26:58just go with Think or Swim Platform out 27:01of all of these. And if you if you're 27:04international, I think you could 27:06actually pair interactive brokers with 27:08tradation if you don't have Thinkorswim 27:10available in your country. And if you're 27:12a beginner or unless you're trading 27:15massive size, I just wouldn't use 27:16Lightseed, right? Because the 27:18commissions are just overwhelming. Other 27:21tools, you could use tradingview.com.27:24You don't need to purchase a paid 27:26account. I use the free account. I don't 27:28use this for my personal day trading. I 27:30use this after trading hours if I want 27:32to review charts. I use this to look at 27:34crypto. I use this on my phone whenever 27:36I want to check out a chart. Um, it's a 27:38really easy charting software. I don't 27:40think there's a need to pay for premium 27:42though. You could also use a trading 27:44journaling software where you could 27:45actually link the platform where you 27:47execute your trades to this software and 27:50your trades would actually carry over 27:53and the software would give you feedback 27:55based off your win rate or your reward 27:57to risk and it can give you very 27:59valuable information about your trading.28:02So, it could be super useful. The most 28:04popular one is Tradezella. Now, I don't 28:06personally use one right now. However,28:09I've had a lot of students that have 28:10used Tradezella and other ones and they 28:12found it really beneficial for their 28:14trading. I would just do a Google search 28:16and look up best trading journaling 28:19softwares and from there just pick the 28:21one that makes the most amount of sense 28:22for you. And when it comes to actual 28:24trading setup, my biggest recommendation 28:27is to just keep it simple. Now, you can 28:31trade on a laptop. That's fine. When I 28:33started, I actually traded on a small 28:35little Dell laptop. However, I do 28:37recommend a 25 in plus monitor just so 28:41you do have the screen space and I'd 28:44recommend either a desktop computer or 28:46you could actually link your laptop to 28:48the monitor. You need a mouse and a 28:50keyboard and of course you need a great 28:52Wi-Fi con uh connection. That's all you 28:55really need. Okay, there are a lot of 28:56traders that have like crazy curved 28:58screens. They have five different 29:00monitors and it looks like a really 29:02complicated and professional and fancy 29:04setup. You don't need that. Okay,29:06especially as a beginner, if you have a 29:0825-in monitor, a normal computer, and a 29:11good Wi-Fi connection, and a mouse and a 29:12keyboard, that is all you need. Start 29:15small, and then you could upgrade your 29:17setup as you become more profitable.29:19Let's talk about order types and order 29:21execution. Whenever you are placing a 29:23trade, you need to submit an order. And 29:27the best way to think about this is the 29:29orders that you place is kind of like 29:31the language between you and your 29:33trading platform. And you're going to be 29:36placing different types of orders 29:38depending on the trade and depending on 29:40what you want to accomplish. So you're 29:42going to be placing different orders if 29:44you're going long or short or whether 29:46you want to buy at a certain price or 29:48exit at a certain price. And it's really 29:50important to master the language between 29:53you and your trading platform so you 29:56could trade quickly and you could trade 29:58efficiently. So, let's go ahead and talk 30:00about all of these types of orders so 30:02you can become a master and you could 30:04really understand the types of orders 30:06that you want to execute. So, let's go 30:09and start with a market order. And this 30:11is probably the most basic type of 30:14order. And by definition, a market order 30:17buys or sells a stock immediately at the 30:21best available price. So, if you're 30:23trading on your platform and you press 30:26market buy, you are going to get filled 30:28right away at the best available price.30:31If you're in it long, let's say you're 30:33in a position, it's long, it's moving 30:35up, and you want to sell that position 30:37as quickly as possible, you would place 30:39a sell market order and it would fill 30:42your position at the best price 30:44available, the current price. So, this 30:46is an order that you would use if you 30:49want to get out as quick as possible.30:51you want to exit right now, you would 30:53place a market order to sell if you're 30:55long, or you would place a market order 30:57to cover your shares if you're in it 31:00short. So, let's say, for example, Apple 31:03is trading at $180, and you place a 31:06market buy order. That order is going to 31:09fill you right away. However, it's not 31:12going to fill you at your desired price.31:15It's not going to fill you or it's not 31:16guaranteed to fill you at your desired 31:19price. Meaning, let's say the price is 31:21at 180. You press a market order to buy.31:24Maybe by the time your order executes,31:27the price moves and it'll fill you 31:29either at 180.02 or maybe if it's really 31:34moving fast, it's going to fill you way 31:36late and it's going to fill you at 18020 31:39or maybe it'll fill you, you know, fill 31:41you below that price where it fills you 31:43at $1 179.98 or $179.90.31:47And that is really going to depend on 31:49how quickly the stock is moving. It's 31:51going to depend on the spread which 31:53you're going going to learn about later.31:56It's also going to depend on the 31:57liquidity. So this is like saying I'll 32:00pay whatever the current price is. Just 32:02get me in right now or get me out right 32:05now. Okay. So what does a market order 32:08really mean? So you're going to get 32:10really fast execution because it's going 32:11to fill you immediately whether you're 32:14getting in or whether you're getting 32:15out. However, it's not guaranteed to 32:18give you the best price. For example,32:20let's say Apple is moving up and it's 32:24starting to consolidate. And let's say I 32:26want to buy it when it hits 180, like 32:30this example, right? And let's say as 32:32soon as it hits 180, that's your trigger 32:34to buy it. And you place a market order 32:37to go long, right? By the time your 32:40order executes, maybe the stock has 32:42already moved really quickly and it's 32:44here by this point where where it really 32:46moved up and you place an order at 180 32:48market order to buy, but it ends up 32:51filling you at let's say 18030,32:54right? That could happen where you get 32:56filled 30 cents late than when you 32:59actually placed the order. And of 33:01course, that's going to depend on 33:02liquidity. It's going to depend on the 33:04spread and it's going to depend on how 33:05quickly the stock is moving. So that's 33:07the downside. you're not always going to 33:09get the best price. You can't control 33:11the price that you get filled at because 33:13it's just going to fill you at the best 33:14available price, right? So, for me 33:16personally, I rarely use market orders 33:20to enter into trades. Pretty rare. I 33:22would say maybe 5% of the time, I'm 33:24going to enter into a trade using a 33:27market order. However, I always use 33:30market orders to exit my trades, right?33:33Um, even if it's a stop-loss, right? A 33:36stop-loss order actually triggers and 33:38executes like a market order. And I'm 33:40going to explain that in a second. But 33:42whenever whenever I'm exiting, I'm 33:44always using a market order to exit. I 33:47rarely use market orders to get in 33:49because whenever I'm entering into a 33:51trade, I want to make sure I get my 33:54desired price. I don't want to get in 33:56late. Okay? Because if I get in late,33:58let's say I want to get in at 180. I 34:00place a market order right here and it 34:02fills me a 18030. Well, I'm 30 cents 34:05late. That's going to impact the size of 34:07my stop-loss, which you will learn about 34:09later in this free course. And it's also 34:12going to impact my reward to risk, which 34:14you will also learn later. So, yeah,34:16when it comes to market orders, I don't 34:18like to use them to get into trades.34:20However, I always use them to exit out 34:22of trades, and it's going to fill you at 34:24the best available price. However,34:26you're not guaranteed to get the exact 34:29price that you want. So, this is more 34:31for instant execution. Let's go over 34:33what a limit order is. A limit order 34:36lets you set the maximum price you're 34:39willing to pay when it comes to going 34:41long or the minimum price you're willing 34:43to sell when you're going short or when 34:45you are selling. So the best way to 34:48explain this is to go over an example.34:50So let's say you want to buy Tesla at 34:53$240. However, the current price is 34:57$245. So, let's say Tesla is basing and 35:01right here it's $245.35:05Okay, great. However, you think that's a 35:07little bit too expensive. You don't want 35:09to pay $245 35:11for your shares of Tesla. You want to 35:15pay $240 or less, right? You don't want 35:19to pay anything more than $240. So,35:21you're okay with paying 240. You're okay 35:23with paying $235 for Tesla. You're okay 35:26with paying $200 for Tesla. You just 35:28don't want it to be more than $240.35:32Great. In this example, you would set a 35:35limit order at $240. So, you'd place a 35:39limit order right here. Let's say at 35:43$240. So, $240,35:46you place a limit buy. Okay, I'll just 35:49write limit 35:51buy. Fantastic. So now the only way that 35:55you would get filled on your limit buy 35:58order is if the prices went down to 36:01either 240 or below 240 where maybe 36:05let's say Tesla reported earnings and 36:09the earnings weren't very good at all 36:11and the stock gapped down overnight had 36:14an overnight change in price to the 36:15downside and opened lower the next day.36:18Let's say it opened lower at 230, right?36:21Would it fill your order? Well, is 230 36:25less than 240? Is it a better price than 36:28240? Yes, it is. 230 is less than 240.36:31It's a better price. So, therefore, you 36:33would get filled, right? If it gapped to 36:36220,36:37would you get filled? Well, 220 is less 36:39than 240. You placed a limit by 240. So,36:42you want to pay 240 or better. 220 is 36:45better than 240. Yes, you'd get filled.36:48Let's say it opened instead at 242.36:51Would you get filled?36:55Would you? And the answer is no, you 36:58wouldn't because you only want to buy 37:00this at 240 or lower. 240 or better. So,37:03you will not get filled. So, you would 37:04get filled at 240s, 230S, 220s, right?37:08And you know the downside is, right, you 37:11control the price. You control exactly 37:15where you want to get in. However, you 37:17might not get filled, right? Maybe the 37:18prices don't go down to 240 and instead 37:22the prices just continue going higher.37:24In that case, you're not in the trade,37:26right? So, this is like telling your 37:29broker, I want you to buy these shares.37:31I want you to buy this stock, but only 37:33if it gets cheap enough. Okay? And the 37:35same thing applies if it's the opposite 37:37way and you're going short. It's the 37:39same exact thing. Okay? So, when it 37:41comes to limit orders, I actually use 37:44limit orders 95% of the time when I'm 37:48entering my trades. And I place limit 37:50orders on the current ask price when 37:52going long. And I place sell limit 37:54orders on the current bid price when 37:56going short. So, there's probably going 37:58to be a video later on in this free 38:00course that really explains the bid and 38:02the ask. But basically, you know, when 38:05it comes to trading, it's basically kind 38:07of like an auction. You have a bid and 38:09you have the ask, right? The ask is the 38:13best price the sellers are willing to 38:16sell at and the bid is the best price 38:19[clears throat] the buyers are willing 38:20to buy at, right? So, for example, let's 38:22say the bid is at $7 and the ask is at 38:26$701. So, right off the bat, the 38:29difference between the bid and the ask 38:31is called the spread. So, $701 minus $7 38:35is 1 cent. That means there's one cent 38:37spread here. That still sounds 38:39confusing. Don't worry. I'm going to 38:40cover it later in this free course.38:41Okay. So, if I want to buy a stock, I'm 38:46going to get failed where where well,38:48who am I buying from? I'm buying from 38:50the sellers. And the sellers, well,38:52their price is at 701. The sellers are 38:55willing to sell this stock at 701. So,38:58when I'm buying, I'm going to get filled 39:01on the ask. I'm going to get filled on 39:02the ask price. Whenever I'm selling,39:05well, who am I selling to? I'm selling 39:07to the buyers on the bid. So if I sell 39:09something, I'm going to get filled on 39:12the bid at $7. So for example, let's say 39:15I buy a,000 a,000 shares of stock,39:19right, at this current price. Well, I'm 39:21going to get filled for where I'm going 39:23to get filled on the ask. So I buy a,000 39:26shares. I'm going to get filled at 701 39:29when I'm going long. Okay. Now, if I was 39:32to sell immediately, let's say the price 39:35doesn't move and I just sell this 39:37immediately. Well, if I sell, I'm going 39:39to get filled on the bid, right? So, now 39:41I'm selling a,000 and I'm going to get 39:44filled at $701. Oh, I'm sorry. I'm going 39:47to get filled at $7. $7, not 701. I got 39:51filled at 701 when I bought it. And then 39:53when I'm selling it, I get filled on the 39:55bid. So, I get filled at $7. So, how 39:58much am I losing here? Well, right off 39:59the bat, I'm losing 1 cent, right?40:02Because $71 40:04when I got in long, I got filled on the 40:06ask. When I sold it, I got filled on the 40:08bid. So, I lost one cent in this trade,40:10right? 1 cent on a,000 shares is $10.40:15So, that means by just me getting into 40:19this stock and without it moving, I'm 40:21automatically down $10. I'm 40:24automatically down one cent on every 40:26single share that I bought.40:28Coincidentally, one cent is also the 40:31spread. And that's exactly why spread is 40:33significant. That's why we want to trade 40:35stocks that have tight spread, right?40:37Because if [snorts] I'm buying, let's 40:39say, something that's super spready.40:41Let's say instead this is at 707. This 40:46is at $7, right? So the the bid is at 40:48$7. It's the best price the buyers are 40:51willing to buy at, but the ask is at 40:53707. This is the best price the sellers 40:55are willing to sell at. That means 40:58what's the spread? Well, $707 minus $7 41:01is 7 spread because that's the 41:03difference between the bid and the 41:04offer. That means if I was to buy this 41:06stock, where would I get filled? 1,000 41:08shares. I want to buy it. I would get 41:10filled on the offer. So, I'd get filled 41:12at 707.41:14And then let's say the price doesn't 41:16move and I want to sell it. Okay, I sell 41:18a,000. Where would I get filled? At $7.41:23So, how much did I lose here? I lost 7 41:26cents per share. How many shares did I 41:28buy? A,000. So I would lose $70.41:32So basically the spread is significant 41:35because that's the exact amount that 41:36you're down whenever you enter into a 41:39trade without it moving, right? Like if 41:41you enter into a trade right away,41:43you're down whatever the spread is.41:45You're down 1 cent times how many shares 41:48you have or in this case down 7 cents 41:50because the spread is 7 cents. Does that 41:52make sense? So that's actually a little 41:54bit of a crash course when it comes to 41:56spread. It's not really important yet.41:57You don't need to know that yet, but 41:58just so you have some background. Let me 42:00go ahead and erase this. So let me 42:03explain how I place my limit orders.42:05Okay, let me just erase all this. Okay,42:08so when it comes to placing my limit 42:10orders,42:12and I'm looking and by the way, you 42:14would use the level two to un to see the 42:18bid and the ask, but most platforms are 42:20going to tell you this. So again, this 42:22is the bid.42:23This is the ask. Okay. So if I get in,42:27let's say the bid is at $7 again and the 42:30offer is at 71. When I buy it, where am 42:32I going to get filled? I'm going to get 42:34filled on the ask. So what I will do 42:36whenever I'm getting in is I place a buy 42:40limit order on the current ask price. So 42:44if I want to buy this right now and I 42:47don't want to pay more than 701, I will 42:51place a buy limit order at 701.42:56Okay? And whenever I want to sell, I can 42:59either go market, right, which is I'll 43:01just get out immediately at the best 43:03price available, or I could place a sell 43:06limit order on the bid. So whenever I'm 43:09buying, I'm buying on the ask. Whenever 43:11I'm selling, I'm selling on the bid. So 43:13that's what I would do, right?43:15[clears throat] So if I'm going short, I 43:17want you to think about it. If I'm going 43:19short, what kind of order am I going to 43:21place? Well, I'm going to be placing a 43:23sell limit order where a sell limit 43:26order on the bid. Okay, in that case,43:31I'm paying that this price or better. So 43:34if the price goes down, I'm not going to 43:37get filled late, right? Or let's say I 43:40place a buy limit order. Where am I 43:41going to place that? on the ask, I'll 43:43place it at 701. In that case, if prices 43:45jump to 702 or 703 or 704, I'm not going 43:49to get filled late because it's a limit 43:51order. I'm only willing to pay that or 43:54lower. So, if I place a limit order at 43:57701, that means I only want to get 43:58filled at 71 or better. So, I can get 44:01filled at 71 at $7 or $6.99, right? But 44:04I'm not going to get filled at 702. And 44:07that's what ensures I won't get filled 44:09late. So that's exactly why I place buy 44:12limit orders on the current ask or 44:14whenever I'm going short, I will place a 44:16sell limit order on the current bid.44:19Now, that honestly might sound a little 44:22bit confusing, especially if you're a 44:23beginner. Don't worry, that's fine,44:26okay? If this still sounds confusing,44:27don't worry. I'm going to cover it later 44:29in this free course. Uh, but that was 44:31basically a crash course on how the bid 44:33and the ask works and how spread works 44:35and how I place my orders. I play I 44:37place buy limit orders on whatever the 44:39current offer is to make sure I get 44:41filled here or better and I don't get 44:43filled late. Whenever I'm going short, I 44:45place sell limit orders on the bid 44:47price. And that ensures I either get 44:49filled at $7 or better and I don't get 44:51filled late if the price continues to 44:53drop. Okay, hopefully that makes sense.44:56And my recommendation is to just 44:58practice this. Okay, and let me know in 45:00the comments if you do have any more 45:01questions about this. Happy to clarify 45:02anything. Fantastic. Let's go ahead and 45:04talk about what a stop order is. And 45:06you've probably heard of this because 45:08I'm sure you've heard of stoploss. Well,45:10a stoploss order is a stop order. Okay,45:13so by definition, a stop order becomes a 45:17market order once the price hits your 45:19stop level. Most people use this to 45:22protect themselves from big losses. So,45:25hypothetically,45:27you bought Nvidia at $120. Okay, Nvidia 45:30triggers a breakout and you bought it at 45:33120 right here and you set a stop order 45:36at 115. Let's say your stop order is at 45:39115 45:41right here. And this is a sell stop 45:43order. Okay. If the price drops to 115,45:47it will trigger a market order to sell 45:50your shares. That's really important.45:51So, let's say that again. If the price 45:54drops to 115, that means the price drops 45:57to 115, it will trigger a market order 46:00to sell your shares. So, it will exit 46:02you as soon as your stop order is hit 46:07when prices hit 115. Now, keep in mind 46:10because it will trigger as a market 46:12order, it's not guaranteed to fill you 46:15at exactly 115. It might fill you at 46:18115. It might also fill you at 11480 46:22or 11490 or 11510 or 11515, right?46:26Because it's a market order. We already 46:28talked about that a market order gets 46:31you out at the best available price. And 46:33we already talked about that if it's an 46:35illlquid stock or if there's a lot of 46:37spread or if it's a really fastmoving 46:39stop um stock, it might not fill you at 46:42the exact price where you placed your 46:45order. Okay? So, if you place a stop 46:47order at 115 and it triggers, it might 46:50not actually fill you at 115. It will 46:52fill you at whatever the best available 46:54price is when the order executes, which 46:56could be 11490,46:58it could be 11460, could be 11510,47:02right? It completely depends. Okay, so 47:06let's go over another example. Um, you 47:08could also place stop orders when you 47:10want to enter into a trade. So, let's 47:12say Nvidia is at $120. Okay, let's erase 47:16this example. Let's say Nvidia is 47:18already at $120 47:21right here. Okay,47:24but you want to enter the trade if the 47:26price hits 130. Meaning, let's say it's 47:28at 120. You don't want to get in at 120.47:30You want to get in at 130 right here.47:35Because let's say, I don't know, if it 47:37hits 130, it officially triggers a 47:40weekly setup and there's a breakout on 47:43the weekly time frame. You only want to 47:46get in if prices hit 130. So, what you 47:49can do is you place a buy stop order at 47:54130. And this will only trigger if 47:56prices move up and hit 130. Okay? So,48:00you could place, you know, stop orders 48:03when it comes to protecting yourself 48:05where you're in it long and you place a 48:07stop-loss order wherever your stop loss 48:10is. Or maybe you're in it short. Maybe 48:12it's a breakdown, right? You get in 48:15right here at 120 and let's say your 48:18stop loss is at 130. Hypothetically, you 48:22would place a stop loss at 130 and then 48:23if prices go back up to 130, it would 48:26exit you out of your position. Okay? So,48:28you could either do it to exit your 48:30trades or you could even do it to enter 48:31into your trades where like in this 48:33example, prices are at 120, but you only 48:36want to get in if prices hit 130. So,48:39you would place a buy stop order at 130 48:41and it would only execute once prices 48:45move from 120 to 130. So, this could 48:48help you limit losses, but it may 48:50execute slightly below your stop due to 48:52volatility, right? We just talked about 48:54that how because it's a market order,48:56you're not guaranteed to get filled at 48:58the exact price that you want, right?49:00And same thing with this. If you place a 49:02buy stop order at 130 and prices move up 49:05and hit 130, it might not fill you at 49:07130. It might fill you at 12950. It 49:09might fill you at 13030, right? Again,49:12depending on how fast the stock is 49:14moving. So, this allows you to place 49:17orders ahead of time if price hits a 49:20certain level, right? So, if prices go 49:22to 130, it'll fill my order and it'll 49:24it'll trigger me into the trade. Or 49:26let's say it's a short, right? Let's say 49:29this is 100. You only want to get in if 49:32prices hit 90, right? In that case,49:35you'd place a sell stop order at 90 and 49:38then prices need to go down to 90 to 49:42fill your order and you would get 49:44executed here as a market order. Okay?49:47So, you could use stop orders either to 49:50exit out of trades by using by using 49:52just a traditional stop-loss order like 49:55probably what you've heard of, you know,49:56that we just showed where you're in a 49:58trade, you place a stop-loss. If it hits 50:00your stop, you're out of the trade to 50:02protect yourself from further downside.50:04Or you could even use it to enter into 50:05trades where you want prices to move up 50:08to a certain key level to get filled or 50:11if you're in it short, you want prices 50:12to drop to a certain key level before 50:14you get in in the trade short. So 50:17hopefully that makes sense. Um, and 50:18yeah, make sure you rewatch this clip 50:21and the other clip, the limit order, a 50:23couple of times to really understand 50:24what this means. And my suggestion is to 50:27go and practice this. Open up your 50:28platform and start taking taking stop 50:31order trades and start taking limit 50:33trades as well, just to get a feel of it 50:35and just to get some practice in. Let's 50:37go ahead and talk about what a stop 50:39limit order is. And just like the name 50:42suggests, a stop limit order combines a 50:45stop order and a limit order. So once 50:47your stop price is reached, instead of 50:50it triggering as a market order like I 50:53talked about in the last example,50:55instead it triggers as a limit order. So 50:58instead of a market order, it triggers 51:00as a limit order. So let me explain why 51:02this is important and how it works. So 51:05let's say you're watching Nvidia at 51:07$120.51:09You've identified a resistance level at 51:12125. Price has tested it multiple times,51:15but it hasn't broken through yet. Okay?51:17So, let's say you're looking at Nvidia.51:19You see a consolidation, and the current 51:21price is $120.51:25[snorts] And this key resistance level 51:27is right here at let's say $125.51:33Fantastic. you strongly believe that if 51:37it breaks over 125, it could rally 51:40quickly to 130. So let's say this is 51:42your target at 130. You're confident 51:45that if prices break 125 and it breaks 51:48out of this resistance area, it could 51:49easily go to 130. Great. So what you can 51:53do to execute on this order is you could 51:56place a buy stop limit order. Okay? So 52:00your stop price would be 125, right?52:03Just like in the other [snorts] example 52:06that we just went over when when we went 52:08over what a Whoops. When we went over 52:11what a stop order is, you could place 52:14your stop order at 125, right? So,52:18meaning if prices go up to 125, it would 52:22trigger your stop order and you would 52:24get into the trade. Now, a traditional 52:26stop order, that order would trigger and 52:29execute as a market order, meaning you 52:31might get filled at 125. You also might 52:34get filled at 12510 or 12530 or 12570 or 52:39even 126. It might fill you late because 52:42this stop order is triggering like a 52:45market order, right? Maybe it fills you 52:47even below. Who knows? It depends how 52:48the stock moves. But the point is,52:50you're not going to get your exact price 52:52at 125. You might get above your exact 52:56price or below your exact price. And 52:58that uncertainty is unsettling for a lot 53:01of traders. Who knows? Maybe the stock 53:03moves really quickly, right? It hits 53:06your stop order at 125, triggers a 53:08market order, and it fills you at 127,53:11right? It fills you at 127, and now 53:13you're in the trade $2 late, and you 53:16don't like that. So what you can do to 53:18protect yourself from that situation is 53:20instead of using a stop order, you would 53:23be using a stop limit order. So when you 53:27add the limit part of this into the 53:30equation, right? What you could do is 53:32you place your stop price at 125, great.53:35So when prices hit 125, great. Instead 53:38of it triggering a market order, it 53:41would trigger a limit order. and you 53:43could do a buy limit order at 12550. So 53:47let's say that happens. Let's say you 53:50place an order, a stop order at 125 and 53:54when the stop is hit, then the limit 53:56order activates at 12550.54:01So keep in mind, what does a limit order 54:03do? Let's go ahead and remind ourselves 54:06what a limit order does.54:08A limit order sets the maximum price 54:11you're willing to pay when you're 54:13buying. It sets the maximum price. So 54:15basically 54:17with this limit order triggering at 54:2012550, it's either going to fill you at 54:2312550 or lower. Meaning that let's say 54:28the stock moves really fast and by the 54:30time this triggers it pops really fast 54:33to to 12570 or 126 or 127, it's not 54:37going to fill you up there. It's not 54:38going to fill you late. It's only going 54:40to fill you at 12550 or lower. Okay? So,54:45if Nvidia's price hits 125, your buy 54:49stop triggers your limit order 54:53activates, right? So your buy stop would 54:54trigger and as soon as that's triggered 54:57it would activate your limit order and 54:59you will only get filled if the price is 55:01at 12550 or lower. You will not get 55:05filled if the if the price spikes too 55:09fast and too high. You won't get filled 55:11at 126 or 127. You're only going to get 55:13filled at 12550 or lower. It's like me 55:16saying if the stock proves itself and 55:20breaks above resistance, right? If it 55:22breaks above 125, I want to get in.55:25However, I only want to get in if I can 55:27get a reasonable fill. I only want to 55:29get in if it fills me at a reasonable 55:31price. And you could set what that 55:33reasonable price is. You could set this 55:35instead of 12550,55:38you could set this at 12510.55:42Right? In that case, if this triggers 55:45your limit order activates, right?55:48you're only going to get filled at 55:50either 12510 or better. You won't get 55:52filled late. Now, the downside is maybe 55:55it's fast. Maybe it goes up right away 55:57and it doesn't even it just flies by 56:00your limit order. In that case, you 56:01won't get filled. However, at least 56:03you're not in it late versus, you know,56:05if you used a regular stop order, it 56:08would fill it would fill you market and 56:11you might be super late on the trade.56:13Okay, does that make sense? So, in 56:15summary, I know that might be a little 56:16bit confusing. In summary, whenever 56:19you're placing this type of, you know,56:22stop limit order, it's always going to 56:24ask you what's your stop price. Like on 56:27your platform, it's always going to ask 56:28you what's your stop price and what's 56:31your limit price. Okay? So, you have to 56:34put in the stop price first. In this 56:36case, I want to potentially get in if it 56:39breaks above this resistance, right? If 56:41it breaks above 125, that's the trigger 56:43for my setup. I want to get in. So, your 56:45stop price would be 125.56:47However, I don't want to pay 126 for 56:50this. I don't want to pay 127. I don't 56:52want to get in late at 128. I want to 56:54make sure that if it hits my stop at 56:56125, right? I want to make sure that my 56:59average price is no greater than 12550.57:04I'm okay with being 20 cents late, 30 57:07cents late, even 50 cents late. However,57:08I'm not okay with being even 60 cents 57:10late, which would be at 12560. I'm not 57:13okay with being $1 late, which would be 57:15at 126. No, I want to get filled at 57:1812550 57:19or better. And this allows you to 57:22control the price that you get filled 57:23at. So, it's a really useful way to make 57:26sure that if you have a if you're 57:27getting into a trade using a stop order,57:30well, you're not going to get filled 57:32super late when it ends up triggering as 57:34a market order. You could you could 57:36place a stop limit order and you'll get 57:38filled, you know, at a you you make sure 57:40you won't get filled at too high of a 57:42price. Okay? I don't recommend doing 57:44this uh when it comes to exiting a 57:46trade, right? Like let's say you're 57:48already in a position. Let's say you're 57:50in this breakout long. I don't recommend 57:54placing a stop limit order here, right?57:57Because if you're exiting a trade, you 57:59want to get in, you want to get out as 58:01soon as possible. You don't want to like 58:03imagine you leave your desk and you have 58:05a stop limit order here. Who knows, it 58:07might not fill you and all of a sudden 58:09you're in the trade as it's going 58:10against you. So, when it comes to 58:11exiting, I would just use a regular 58:15stop order where it'll just fill you 58:17market at whatever the price is. But 58:19whenever you're entering, you also have 58:21the option of using a stop limit order 58:22to make sure you control the price that 58:24you get filled at. Okay? Hopefully that 58:25makes sense. And my recommendation,58:27guys, is based off my explanation here,58:30I would load up your trading platform. I 58:32would re-watch every single one of these 58:34explanations and as I'm explaining it, I 58:37would literally, you know, do what I am 58:39explaining. I would literally go on your 58:40platform and place these types of 58:42orders. You could do it on maybe on a 58:43simulation with paper trading so you're 58:46not risking real money and you could 58:47practice and you could see how it all 58:50plays out in real time. That's my 58:51suggestion. So do that and yeah, I'll 58:55see you in the next video. Let's go over 58:56some key trading terms. And to make this 58:59as convenient as possible for you, I 59:01actually uploaded all of these terms 59:03onto a word document. And you can 59:05download this document in my free course 59:08community. So, if you go to the 59:10description of this video, you click on 59:12the link to join my free community, and 59:14you go into the free course, the same 59:16one that you're watching right now, you 59:18could actually go to the key trading 59:20terms video, and right under that video,59:23you will be able to find this PDF 59:25document, and you'll be able to download 59:27it or even print it. So, make sure you 59:29join up in my free course community 59:31because I'm going to be posting way more 59:34resources for you, such as other PDFs 59:37and frameworks that you can download and 59:39print out that will really help your 59:41trading. I also do bi-weekly live 59:44trainings that you can sign up for, of 59:46course, as well in my free community.59:48So, that's probably the easiest way for 59:50you to review this and for you to refer 59:52back to it. So, download that file and 59:54I'll see you on the next video. Hey 59:56guys, the topic for today's class is the 1:00:00differences between technical and 1:00:02fundamental analysis. And we're still 1:00:04super early on in the course. So, I 1:00:06figured it'd be very important to 1:00:08actually touch up on technical analysis 1:00:10and fundamental analysis. And um if you 1:00:13guys haven't heard of those terms, this 1:00:17usually these are the terms that 1:00:19describe how to analyze a particular 1:00:22security. you know, it mostly applies 1:00:24for, you know, stocks and it does also 1:00:27apply for crypto, but I think it was 1:00:29coined mostly for stocks, right? And,1:00:33you know, I'm sure you've probably heard 1:00:34one is superior to the other. So, I'm 1:00:36here going to tell you exactly what they 1:00:39are, what to focus on, and [snorts] how 1:00:42you can begin using them. Okay, so let's 1:00:45start out with technical analysis.1:00:48Technical analysis is focusing on 1:00:51reading price action. Okay, that's what 1:00:55we're focused on. reading historical 1:00:57price trends and price action in order 1:01:01to determine whether we're going to go 1:01:04long or short or determine our our 1:01:07outlook on the stock for whether it's 1:01:10you know during the intraday time frame 1:01:12whether it's you know few hours few 1:01:14minutes or even you know few days even 1:01:17few weeks few months away okay so two 1:01:20the two buzzwords or the two buzz terms 1:01:22are price action and price trends 1:01:26Okay. And technical analysis for trading 1:01:31specifically for trading. And that's 1:01:33what this course is about. We're here to 1:01:35learn about trading. Technical analysis 1:01:38is the only way to analyze a stock for 1:01:43the short term, right? Because as 1:01:45traders, [snorts]1:01:47we're operating kind of on a short-term 1:01:49basis. Even if we're approaching 1:01:52longerterm trades, you know, trades that 1:01:54are, you know, several months or, you 1:01:55know, several weeks, um, that's still 1:01:58short-term enough where you can actually 1:02:00where you're going to be using technical 1:02:01analysis. Okay? If you're looking, you 1:02:04know, 10 years out, 5 years out, trying 1:02:08to figure out the value of a stock, of 1:02:10course, then we're going to use 1:02:11fundamental, but I'm [snorts] going to 1:02:12I'm going to get into fundamental 1:02:13analysis in a second here. I just want 1:02:15to finish up with technical analysis. So 1:02:18the whole point the whole goal of this 1:02:20course is to actually teach you guys 1:02:22technical analysis and that's only one 1:02:25part of trading but it's it's one of the 1:02:27most important parts because ultimately 1:02:29that's how we're going to predict you 1:02:31know price action is is by reading uh 1:02:34prior price action you know the way the 1:02:37candlesticks look the way the moving 1:02:39averages look. We're reading all of this 1:02:41to make um intelligent decisions on 1:02:45where to put our money and what trades 1:02:46to actually take. Okay? And that's why 1:02:49technical analysis is king.1:02:53If you guys aspire to be successful 1:02:55traders, you must innately understand 1:02:58technical analysis. And this is what you 1:03:00should be focusing on technical 1:03:02analysis. Not and we're going to get 1:03:04into anal fundamental analysis.1:03:06Fundamental analysis is basically 1:03:09looking and reading the intrinsic value 1:03:12of a security, of a stock, of a crypto,1:03:14the intrinsic value. So, you're going to 1:03:16be looking at um you know macroeconomic 1:03:19trends. You're going to be looking at 1:03:20financial statements of the company.1:03:22You're going to be looking at [snorts]1:03:23intellectual property. You're going to 1:03:25be trying to read the company's worth,1:03:28right? And based off you know how 1:03:31valuable the company is you know what 1:03:33they offer whether um you know uh you 1:03:36know their products are trending you 1:03:38know for a longer term scale or um you 1:03:42know just reading the actual value of 1:03:43the company you know we're able to 1:03:45establish you know if this is a good 1:03:47investment but this is what you have to 1:03:49understand fundamental analysis is you 1:03:51know for the longer term for 5 10 15 20 1:03:5525 years down the road right we can't 1:03:57read uh you know we can't read shorter 1:04:01term trends using uh fundamental 1:04:05analysis. Okay. So for our purposes here 1:04:08for for you know purposes of trading and 1:04:10actually before I get into that I just 1:04:12want to uh give you guys a quick 1:04:13example. The reason why a lot of people 1:04:16um you know unsuccessful traders a huge 1:04:19reason is because they actually pay 1:04:20attention to news which at the end of 1:04:22the day you know news about a company 1:04:23news about a crypto at the end of the 1:04:25day that's fundamental information 1:04:27that's not technical information right 1:04:29that's not about price action it's about 1:04:30something the company did something the 1:04:32company acquired right um certain news 1:04:34going around the company people focus on 1:04:37that and they actually enter trades just 1:04:40based off the news just based off 1:04:42recently heard fundamental information 1:04:45and this is the one of the biggest 1:04:47mistakes you can make. You know, why 1:04:49would you, you know, buy something when 1:04:53um, you know, you're hearing about the 1:04:56news the last we're the public. We hear 1:04:58about the news literally last. Think 1:05:00about all of the uh, you know,1:05:02shareholders or people, you know,1:05:04insiders in the company. They heard 1:05:05about this news weeks ago, months ago.1:05:07the news that you're hearing on a 1:05:08day-to-day basis about stocks,1:05:10companies, crypto, it's already priced 1:05:12into it. Okay? So, stop relying on that 1:05:15information. Sorry for this tangent, but 1:05:17it's extremely important. Stop relying 1:05:19on this information. Okay? It is 1:05:21pointless. It will it will only lead to 1:05:24um you know bias in your trading and and 1:05:28a complete lack of objectivity. Okay?1:05:31And that's why you know in order to have 1:05:33objectivity in trading, we have to read 1:05:35the price action. We have to read what 1:05:36the charts say in the charts like this 1:05:39one here shows you price action. Okay.1:05:41And those are the main differences. So 1:05:43key points here is is uh focus on on 1:05:46technical analysis and you don't really 1:05:49need fundamental analysis for trading at 1:05:52all. I mean I'll tell you the truth. I 1:05:54have never researched a company in my 1:05:55life for that I'm trading. Doesn't 1:05:57matter to me, right? I've never looked 1:06:00at news. There's only the only news that 1:06:02could be interesting is like let's say 1:06:04uh the Fed is having a meeting that 1:06:06could be impactful or looking at news 1:06:08that could affect stocks you know during 1:06:10the intraday time frames meaning like 1:06:12during the day let's say some news comes 1:06:14out and a stock drops super hard you 1:06:16that might be interesting to you for a 1:06:18potential trade but besides that you 1:06:20guys should not be focusing on news or 1:06:22fundamental analysis divert um you know 1:06:26all of your attention towards technical 1:06:28analysis read and reading price action 1:06:31Okay. And that's what we're going to be 1:06:34teaching now, you know. So, I hope you 1:06:37guys found this helpful. Okay. Hope you 1:06:39guys understand the differences and 1:06:40which ones to really focus on. And let's 1:06:42get on to the next video in the course.1:06:44Real quick, I believe in transparency 1:06:46and I would never make a claim that I 1:06:48make money with trading without showing 1:06:51concrete proof. So, this is my Charles 1:06:53Schwab brokerage account. I day trade on 1:06:56Think or Swim. And over the last one 1:06:58year, from October 4th of 2024 to 1:07:01October 3rd of 2025, I've been able to 1:07:03generate $529,000 1:07:06in day trading profits, which is a 1:07:08cumulative rate of return of over 340%1:07:12on my entire trading account. And some 1:07:14people may think this is Photoshop or 1:07:16this is some sort of screenshot that I 1:07:18edited. Well, if I go ahead and refresh 1:07:20the page on my Charles Schwab brokerage 1:07:23login and I go back to one year, as you 1:07:26can see, there's the $529,000.1:07:28And the reason I'm showing you this is 1:07:30to be real and as transparent as 1:07:32possible. So, in this video, I'm going 1:07:34to show you the exact process that I 1:07:37followed to become a profitable trader.1:07:39And a lot of what I'm about to teach 1:07:40you, my dad taught me 5 years ago. And 1:07:43it's honestly the reason I'm a 1:07:45profitable trader today. I'm not showing 1:07:47you easy strategies. I'm not going to 1:07:49show you plug-and-play indicators that 1:07:51lead to easy money and oh, use this 1:07:53support and resistance structure to find 1:07:56entries. No, I want to show you the 1:07:58nobullshit process that you could follow 1:08:01right now to actually make this happen 1:08:03so you could hopefully become a 1:08:05full-time trader by the end of the 1:08:07process. And the first step is critical.1:08:10The first step is important. Focus on 1:08:13your education. Okay? A lot of people, a 1:08:16lot of traders, they just want to jump 1:08:17into the markets, fund their account,1:08:19and instantly make money. That's not how 1:08:22it works. And in fact, in all areas of 1:08:25our life, and every other profession out 1:08:28there, you need to educate yourself 1:08:30first. You have to go to school. For 1:08:32example, if you want to become an 1:08:34engineer or a lawyer or a doctor, you 1:08:37basically have to get a degree for any 1:08:39job out there, right? You have to go to 1:08:41school for four years to educate 1:08:42yourself. Yet most traders, especially 1:08:46beginners, they don't want to, you know,1:08:48focus on the education. They just want 1:08:50to make quick money. Well, that's not 1:08:52how trading works. And when you're 1:08:54focusing on your trading education, you 1:08:56want to focus on one core methodology.1:08:59You don't want to be bouncing from this 1:09:01strategy to this strategy, and try this 1:09:04methodology out, then that one, then 1:09:05this one, right? want to stick with one 1:09:07because every single methodology, it's 1:09:10going to teach different principles and 1:09:13it's honestly going to confuse you. And 1:09:15I see this all the time where traders,1:09:16they just bounce around from one thing 1:09:18to another and they never stick in 1:09:20master just one strategy or one 1:09:22methodology, right? You want to build 1:09:25the foundation for your trading success.1:09:27And [clears throat] if you think of a 1:09:30skyscraper that is being built, the 1:09:33engineers, the architects, the project 1:09:36managers, they all focus on building the 1:09:40foundation first. In fact, they spend 1:09:42most of the time working on the 1:09:44foundation because the foundation is 1:09:46what ensures that uh building doesn't 1:09:50collapse three or five or 10 years later 1:09:53because of a crazy storm. And that's the 1:09:55way I want you to think about your 1:09:57trading. Just like how the foundation of 1:10:00a building is built strongly so that 1:10:03building obviously doesn't collapse 1:10:05later on. That's how you need to 1:10:07approach your trading. You have to focus 1:10:09on building the foundation. So what goes 1:10:12into that? Well, number one, your edge.1:10:14What is your edge right in your trading 1:10:18system? What's going to differentiate 1:10:20you from every single other trader out 1:10:23there? And the only way to develop an 1:10:25edge is to educate yourself. Focus on 1:10:28the education. It's your mindset, right?1:10:31Are you going to approach trading with a 1:10:33conservative mindset or an aggressive 1:10:35mindset? How are you structuring your 1:10:37expectations when you go into trading?1:10:40Of course, price action principles. How 1:10:42are you reading charts? Are you using 1:10:44any indicators? If so, how many? Right?1:10:47Which price action principles are you 1:10:49looking for in a setup or rules within 1:10:53your plan? Right? I think you're only as 1:10:55profitable as how strict your rules are 1:10:59within your plan. And that's part of the 1:11:00reason why I'm a profitable trader today 1:11:02is because I'm very disciplined with the 1:11:05constraints within my plan. I don't 1:11:07deviate from my system. Of course, trade 1:11:11management, right? When you enter into 1:11:13the trade, where are you taking profits?1:11:16Are you moving your stop loss? Are you 1:11:17taking half profits and leaving a 1:11:19runner? Or are you taking full profits 1:11:21at target one? Right? Entering into a 1:11:24trade is the first step. The second step 1:11:26is extracting profit from that trade.1:11:29You need a game plan for that. And of 1:11:31course, risk management, which by the 1:11:33way, I probably should have started out 1:11:34with this one. This one is by far the 1:11:37most important. In fact, most of your 1:11:39foundation is going to be built around 1:11:42risk management and limiting your 1:11:44losses. Listen, I know you're excited. I 1:11:47know you want to fund your account. You 1:11:49want to start making money. However, I 1:11:51emphasize, please focus on your 1:11:54education. Focus on building this 1:11:57foundation for your trading because your 1:11:59goal isn't to just make money over the 1:12:01next few months. Your goal is to make 1:12:03money in 5 years, in 10 years with your 1:12:06trading. And the only way to ensure 1:12:08long-term profitability is to build this 1:12:12foundation for success and focus on the 1:12:14education. And if you don't know where 1:12:16to go for this, I have hundreds of hours 1:12:19of free education on the internet. Not 1:12:21only on this YouTube channel that you're 1:12:23watching right now. So I strongly 1:12:25encourage you to watch my other videos 1:12:26on this channel, but I also have a free 1:12:2910 plus hour trading course that is 1:12:31genuinely better than most paid courses 1:12:33on the internet. It will help you build 1:12:35this foundation. So, you could find my 1:12:37free course in the description of this 1:12:39video. Take advantage. Let's move to 1:12:41step number two. Now that you've 1:12:43educated yourself, you know a few 1:12:45strategies, you know how to calculate 1:12:46risk and size your positions, you know 1:12:49how to limit losses, you know what 1:12:51criteria you're looking for in your 1:12:54setups, and you have a methodology. From 1:12:56there, you're probably excited. You're 1:12:58ready to practice, and you're ready to 1:13:00apply what you just learned. And this is 1:13:04by far the most important step. It's the 1:13:06application, right? You can read books,1:13:10watch videos on how to drive a car, but 1:13:13until you're behind the wheel and 1:13:15driving every single day, you're never 1:13:17going to become a confident driver.1:13:19Like, imagine you're on the highway for 1:13:21the first time. Are you going to feel 1:13:23comfortable merging? Are you going to 1:13:25feel comfortable going fast? No, of 1:13:28course not. You need repetition. You 1:13:30need practice. And the most important 1:13:33part of this step, and this is where 1:13:35most traders actually they get this 1:13:37wrong, is when you start practicing, you 1:13:41either want to paper trade, which is 1:13:43trading with fake money, or you want to 1:13:45be trading with very small risk. What 1:13:48most traders do, is that once they've 1:13:50learned the education, great, they fund 1:13:53their account and they start using big 1:13:55risk. And you know when you're using big 1:13:58risk during this experimentation phase 1:14:01where you're testing your strategies,1:14:03you're testing setups, right? You're not 1:14:04going to become profitable right away.1:14:06You're going to make mistakes. You have 1:14:08to figure out what works for you. You 1:14:10have to figure out what doesn't work for 1:14:11you. So why would you risk a lot of 1:14:14money in this beginning stage of 1:14:16learning, right? When you begin live 1:14:19trading, you need to paper trade or 1:14:21trade with small risk. When I say small 1:14:23risk, I'm talking like1 to5 a trade.$1 1:14:27to $10 a trade. Something so small. So 1:14:29even if you have 10 losers in a row and 1:14:32you're risking five bucks a trade, okay,1:14:34you lost $50. That's not a big deal.1:14:37That's not so bad. You're going to learn 1:14:38a lot through those 10 trades, but 50 1:14:40bucks, that's not going to blow up your 1:14:42account. That's the goal, right? And you 1:14:44want to take a lot of trades. You want 1:14:46to experiment with your strategies. Even 1:14:48if some of the setups are lower quality,1:14:51that's fine. experiment with it so you 1:14:53could learn through experience and just 1:14:56take a ton of trades and practice 1:14:59everything that you just learned in the 1:15:01education. Keep in mind that during the 1:15:03step two application phase, your focus 1:15:06shouldn't be to make money. I don't want 1:15:09you to care about the end result of 1:15:12every single trading day. I want you to 1:15:14detach yourself from the outcome and 1:15:18focus on the process. And specifically,1:15:20you're going to be focusing on what is 1:15:22working in your trading and what isn't 1:15:25working in your trading. And the only 1:15:27way that you could figure that out is 1:15:30through step number three, data 1:15:32collection and observation. And this is 1:15:34when you're going to be journaling your 1:15:37results. And no, I don't mean your 1:15:40profits. Okay? I don't care how much 1:15:42you're making dayto-day. I want you to 1:15:43journal what strategies you resonate 1:15:47with, what types of stocks are you most 1:15:49profitable with. For example, for me, I 1:15:53really gravitate towards mid to low 1:15:56caps, and I don't really like trading 1:15:58stocks that are over like $50 to $100. I 1:16:01also don't really trade the name brands.1:16:03So, I won't day trade Tesla or Amazon or 1:16:06Apple. I just don't really gravitate 1:16:08towards those types of stocks. Now,1:16:10other traders may gravitate towards 1:16:13them, right? I just know what I like 1:16:15because I figured that out very early in 1:16:17my trading career. Another another 1:16:19example is with the strategies that I 1:16:21resonate with. I really like breakouts.1:16:23I like breakouts more than I like 1:16:26retracement setups. Now, retracements 1:16:28are still within my trading methodology,1:16:30but I always naturally gravitated 1:16:33towards trading breakouts, right? That's 1:16:35just what works for me. But that might 1:16:37be different for you. That might be 1:16:39different for every single trader. Same 1:16:41thing with the trade management. For me,1:16:43I really enjoy scalping. I love kind of 1:16:47getting in and out of positions quick,1:16:49right? I get big size. I go for a bit 1:16:52smaller moves and I'll take profits 1:16:54quick and I'll do that a lot of times 1:16:56every single day and my profits really 1:16:58add up. And that's what I like to 1:17:00gravitate towards. right now. I do other 1:17:02styles of trading as well where I'll get 1:17:05in and I'll hold that trade for a few 1:17:06hours, but I wouldn't say that's my 1:17:09bread and butter. I still know how to do 1:17:10it. I still do it almost every single 1:17:12day, but that's not like my breadand 1:17:14butter strategy. So, you need to figure 1:17:16out what you resonate with. What style 1:17:18of management do you like? Do you like 1:17:21kind of getting in and out quick, which 1:17:22is a lot more active, or do you like 1:17:25perhaps getting into something in the 1:17:27morning and then waiting until, you 1:17:29know, the end of the day to get out? And 1:17:32the only way that you're going to figure 1:17:34this out is to apply, is to practice and 1:17:39trade everything that you've learned in 1:17:42your education. And as you're practicing 1:17:44in trading, I want you to be journaling 1:17:46what you're gravitating towards and what 1:17:48strategies are making you money. And I 1:17:51want you to do what makes sense to you.1:17:54Do what you resonate with. When you take 1:17:57a trade, you usually get a really good 1:17:59feeling about it. And there's always 1:18:01going to be a style of trading that 1:18:02you're like, "Yeah, I just like this. I 1:18:05could feel it." You know, and you almost 1:18:07develop an intuition for that style. And 1:18:10that's, you know, that's what I want you 1:18:11to accomplish through this data 1:18:12collection and observation point. Now,1:18:14in the beginning of your journey, you're 1:18:17not going to know exactly what you 1:18:19resonate with at first. You're not going 1:18:21to know what strategies are most 1:18:22profitable for you. That's going to take 1:18:24time. And that part is difficult to 1:18:27really identify. But what isn't 1:18:29difficult to identify is figuring out 1:18:31what's not working in your trading. It's 1:18:33pretty easy to figure out what's 1:18:35consistently not making you money. So, I 1:18:38want you to to really focus on that.1:18:40Focus on what isn't working. Example,1:18:43maybe every single day you start the day 1:18:46down 2 to three hours. Every day at the 1:18:49market open, you start the day down two 1:18:50to three hours. Perfect. Stop trading 1:18:53the market open. Eliminate that from 1:18:54your trading plan. Maybe you know 50% of 1:18:58your trades are going for reversals and 1:19:01you're consistently losing money on 1:19:03reversals. Fantastic. stop trading 1:19:05reversals or just be way more selective 1:19:08with reversal setups. You get the idea.1:19:10Figure out what isn't working and then 1:19:12eliminate it. And then what you're going 1:19:14to be left with are strategies and the 1:19:16styles that are working for you. Let's 1:19:18move to step number four. Focus on 1:19:21breaking even consistently and raising 1:19:24risk gradually. Your first priority as a 1:19:28beginner trader isn't to become 1:19:30profitable. It's to become a 1:19:32consistently break even trader. A break 1:19:34even trader is someone who doesn't lose,1:19:37who knows risk management, who knows how 1:19:39to limit their losses. And by becoming a 1:19:42break even trader first, when you know 1:19:45you're consistently not losing, that's 1:19:48going to give you a lot of confidence.1:19:50And that confidence is what you need to 1:19:52become profitable. So, in the beginning,1:19:55when you're just starting out, you don't 1:19:57want to go from beginner to profitable.1:20:00You want to go from beginner to 1:20:01consistently break even and then break 1:20:04even to profitable. Once you're a break 1:20:06even trader and you're not losing every 1:20:09single day, you're like 80% of the way 1:20:11there towards becoming a profitable 1:20:13trader. And as long as you're focusing 1:20:16on step one, step two, step three, and 1:20:18step four, and you're putting in the 1:20:20work, you're consistent, you're 1:20:22disciplined, you're going to see some 1:20:24genuine progress. In fact, you might 1:20:26even begin making money with like $1 to 1:20:29$10 risk where maybe you're making $10 a 1:20:31day, $20 a day, you know, $30 the next 1:20:34day, 10 the next day, 40 the next day,1:20:36right? And you're seeing that results 1:20:38are starting to come in. Now, a big 1:20:39mistake that traders make is that they 1:20:42go from like$1 to $10 risk to like a 1:20:45$100 risk or a $1,000 risk instantly.1:20:48You don't want to do that. In fact, if 1:20:51you can't make money with $1 to $10 1:20:53risk, you won't be able to become 1:20:55profitable with $1 to $1,000 risk. Keep 1:20:58that in mind. And you want to raise your 1:21:00risk gradually. And you don't want to 1:21:04just, you know, quadruple your risk 1:21:06overnight. If you're risking like one to 1:21:09$5 per trade, go from like one to five 1:21:12then to 5 to 10. If you're risking $10 a 1:21:15trade, go to 15. If you're risking 15,1:21:17then go to 25. Right? do it gradually.1:21:20And I would only raise your risk when 1:21:23you have more than two weeks of 1:21:25consistency and when you're feeling 1:21:26strong psychologically. I get asked this 1:21:28question all the time, Emanuel. When 1:21:31should I raise my risk? I feel like I'm 1:21:33ready, but I'm not sure yet. If you're 1:21:35in doubt, don't raise your risk. You 1:21:37want to be raising your risk when you're 1:21:39feeling good. You're feeling confident.1:21:42You have consistency. You now have a 1:21:44track record of success with smaller 1:21:47risk. And that justifies you raising 1:21:50your risk. If you're kind of in doubt 1:21:51and you're not sure, don't raise your 1:21:53risk. You should be raising your risk 1:21:54when you're psychologically 1:21:56strong. Okay? And in the beginning, your 1:22:00risk is actually going to increase 1:22:03rapidly and pretty quickly where I've 1:22:05seen a lot of traders go from, you know,1:22:08let's say $10 risk to a hundred or even 1:22:11$200 risk per trade rather quickly 1:22:14within a few months. But as you raise 1:22:17your risk more and more and more, that 1:22:20uh rate of increase is going to slow 1:22:23down where you might go from $10 to $100 1:22:25risk pretty quick, but then it's going 1:22:28to take more time going from 100 to 300 1:22:30or 300 to 500, etc. So, the higher your 1:22:34risk is, the slower it's going to take 1:22:36to actually raise it. Because when 1:22:39you're dealing with big risk, that's 1:22:41going to come with a lot of emotional 1:22:42and psychological impact where if now 1:22:45you're risking $1,000 per trade, that's 1:22:47going to feel completely differently 1:22:49than when you're risking $100 per trade.1:22:51And you have to understand that the 1:22:53overall process of becoming a profitable 1:22:55trader is exponential. So let's say we 1:22:58have this little graph here. We have 1:22:59time below, okay? And then we have 1:23:02profits here. Most people think that 1:23:04this process is linear. these steps that 1:23:08I just showed you in the steps in this 1:23:09video, it works like this. You put 1:23:11you're putting in a lot of time, you're 1:23:13practicing, you're building your system,1:23:15you're building your edge, but you're 1:23:16not really seeing any results. You're 1:23:18not seeing any results. And then all of 1:23:19a sudden, your results just go 1:23:21exponential as soon as things click. And 1:23:24you don't want to quit trading before 1:23:26this happens. you want to put in and 1:23:28thug it out and, you know, go through 1:23:30all the struggle, put in the time, put 1:23:32in the work ethic, be disciplined 1:23:34throughout this entire stage right here 1:23:36where you're putting in a lot of time,1:23:38but you're not seeing results because at 1:23:40some point your results are going to go 1:23:41exponential. And when this happens, it 1:23:43can completely change your life. So,1:23:45going into step five, at this point,1:23:47maybe you're feeling really good about 1:23:49your trading. You raised your risk from 1:23:51$10, now you're risking $100 per trade.1:23:54Everything is clicking. You're feeling 1:23:56invincible. you're making, you know,1:23:58four or 500 bucks a day. Maybe you're 1:24:00even making a,000 or $2,000 pretty 1:24:03consistently and you're feeling great.1:24:05Well, this is going to happen next. And 1:24:08that is you're going to see something 1:24:11like this where you see a dip in your 1:24:14trading and that goes into step five,1:24:16which is your first major setback. Okay?1:24:21And when you think you have everything 1:24:24figured out where you're making money,1:24:26you're feeling good, you're feeling 1:24:27invincible, you become complacent and 1:24:30unfortunately you stop putting in as 1:24:33much effort towards the other steps of 1:24:36the process like the data collection 1:24:38like raising risk gradually or focusing 1:24:41on the application and journaling. Maybe 1:24:43you're starting to ignore that because 1:24:44hey, everything's figured out. You're 1:24:47making money. And what happens is you 1:24:50fail to adapt when the market changes.1:24:53And I see this all the time where 1:24:55profitable traders, they lose their 1:24:58profitability. They become losing 1:25:00traders because they're not able to keep 1:25:02up with the market. You have to 1:25:04understand that the market is constantly 1:25:06changing from week to week, month to 1:25:08month, from year to year. And you need 1:25:10to always be sharpening the tools in 1:25:13your toolbox. You always need to be 1:25:16working on your trading. You always need 1:25:17to be journaling. You always need to be 1:25:19refining your process and working on 1:25:22your system. The moment you stop doing 1:25:24that, and that usually happens during 1:25:27this parabolic stage because you put in 1:25:29all this work, you're seeing those 1:25:31results going parabolic, then you relax,1:25:33you become complacent, you stop working 1:25:36on your trading, and then you see a 1:25:37major dip and you refuse to adapt. In 1:25:40fact, a lot of times, most traders just 1:25:42force the same strategies that made them 1:25:45money before. But those strategies,1:25:46they're not they're not as effective 1:25:48anymore. And you always have to be okay 1:25:52with lowering your risk, accepting, hey,1:25:55I'm not seeing the same results like I 1:25:57did 5 months ago, right? You have to be 1:26:00okay with going back to the drawing 1:26:01board, refining your system, and 1:26:04changing things around. And this happens 1:26:07to everyone. It even happened to me 1:26:08where I had a really nice parabolic move 1:26:12in my results. I was making money 1:26:13consistently and then all of a sudden 1:26:15the market kind of changed and I saw a 1:26:17big setback in my trading and from there 1:26:19and I wasn't losing money right keep 1:26:21that in mind the reason I'm profitable 1:26:23is because of how good I am at limiting 1:26:25my losses during the setback I really 1:26:28lowered my risk and then it kind of went 1:26:30like this and then I kept putting in 1:26:31more time more time working on my system 1:26:33working on my system before the next 1:26:35parabolic move up and that's kind of the 1:26:37journey as a trader you put in this work 1:26:39you see a big uptick in your results you 1:26:42see a little setback, you put in 1:26:44another, you know, a lot of time, a lot 1:26:46of work, and then you see another 1:26:47parabolic shift in your results. You 1:26:50have to be okay with adapting to the 1:26:52market. You have to be okay with change.1:26:54In fact, the only thing that is constant 1:26:57is change. And I'm going to be 1:26:59completely honest, during this first 1:27:01major setback in your trading, it is 1:27:03going to hurt your ego. You're going to 1:27:05think that you got lucky. You're going 1:27:07to think that, oh, well, maybe I'm not 1:27:09so good of a trader after all. And it's 1:27:12going to be tough to adapt and go back 1:27:15to the drawing board. It's going to be 1:27:16tough to accept that you have to lower 1:27:18your risk and kind of reset everything 1:27:21in your system. And a lot of traders 1:27:24quit here or a lot of traders over risk 1:27:27over trade and then they end up giving 1:27:30back all of their profits during this 1:27:33exponential stage in their results.1:27:36Right? You want to avoid that. Make sure 1:27:38during this setback you are protecting 1:27:41the profits that you made here. Make 1:27:44sure you lower your risk. Maybe you even 1:27:46have to go to paper trading for like a 1:27:48few days or a week just to kind of 1:27:50reset. On the other hand, when you 1:27:52overcome this setback and you see your 1:27:54results starting to go up again where 1:27:56you've adapted your trading, you've 1:27:59re-raised your risk and you're starting 1:28:01to become profitable again. Well, that's 1:28:03going to give you so much confidence and 1:28:06it's going to completely almost shift 1:28:09the way that you look at trading. You're 1:28:11going to be like, "Yeah, I am a 1:28:12profitable trader. I stayed resilient 1:28:15and I overcame that setback." And then 1:28:17any new setback that you see from here 1:28:20is going to be way shorter than this one 1:28:22because you have confidence in yourself 1:28:25that you can adapt to the new 1:28:28environment and you can overcome any 1:28:30obstacle within your trading. Let's go 1:28:32to step number six. And I have a lot of 1:28:34personal experience with this one.1:28:36Mentorship is going to expedite every 1:28:39single step of this process. And I'm 1:28:42going to be honest and blunt. If you 1:28:45don't have a mentor, it's likely to take 1:28:47years to figure this out. And the way 1:28:50that I know that is because my father 1:28:52went through that path. It took him 1:28:54seven years to become a consistently 1:28:56profitable trader because he had to 1:28:59learn through trial and error. He had to 1:29:01experiment with stuff and he never 1:29:02really learned correctly from the very 1:29:05beginning. But when he taught me, it 1:29:07only took me three and a half months to 1:29:09begin making money with trading. And I 1:29:11don't care who your mentor is. I don't 1:29:13care if you pick your friend or someone 1:29:16else on YouTube. That doesn't matter to 1:29:18me. All that I want to emphasize here is 1:29:21make sure that your mentor live trades 1:29:24with you where he or she shares the 1:29:27screen and you're able to ask questions 1:29:30in real time and you could actually 1:29:31watch their execution. That is the best 1:29:34way to learn how to trade. It's by doing 1:29:37it with your mentor. So, like I said, I 1:29:39don't care who your mentor is. But if 1:29:41you do want to learn from me, I have 1:29:43hundreds of hours of free education 1:29:46online on my YouTube channel, but also 1:29:48in my free 10 plus hour trading course 1:29:50that I mentioned earlier in this video.1:29:53But if you do want to work with me 1:29:55personally, you want me to take you 1:29:57under my wing, I do personally help 1:29:59coach and scale traders from zero to 1:30:02consistently profitable where my 1:30:03students trade live with me every single 1:30:06day. So, if you are looking for a 1:30:08personal mentor, you could apply for my 1:30:10mentorship in the description of this 1:30:12video. This was by far the most 1:30:14important piece of advice that my father 1:30:16told me when I was a beginner trader.1:30:19And for anyone that doesn't know, my 1:30:20father was the one who taught me how to 1:30:23trade at the time. And this was four 1:30:25years ago. He had been trading for about 1:30:28four to five years full-time. And now,1:30:30four years later, it's close to a 1:30:32decade. And I remember us sitting in our 1:30:35sun room and he was teaching me, he was 1:30:38showing me different strategies,1:30:39teaching me his methodology. And I 1:30:41remember he told me this really 1:30:43important piece of advice that 1:30:46completely changed my perspective as a 1:30:48beginner trader. And it helped me reach 1:30:51success significantly faster. And I want 1:30:55to share that with you guys. I want to 1:30:57genuinely help you guys learn how to 1:30:59trade. And sometimes you know with 1:31:02trading especially since since it's so 1:31:05much about your psychology your you know 1:31:08your emotions and your mindset that 1:31:11sometimes your skills are not even what 1:31:14has to be changed in order to become 1:31:16profitable. Your mindset is what has to 1:31:19be changed. So I hope especially if you 1:31:21guys are beginner traders this 1:31:22completely changes your mindset. All 1:31:25right. So a lot of people want to go 1:31:27from beginner trader and they want to 1:31:30immediately become a profitable trader.1:31:33Their number one goal is to make money 1:31:36which makes sense. I mean we all are 1:31:38doing this to make money. We want to 1:31:40become profitable. We want to make 1:31:42money. We want to buy you know whatever 1:31:44the cars, the watches. You want to take 1:31:46care of your family, go on vacations,1:31:48have a full-time, you know, do this 1:31:49full-time. Whatever the case is, this is 1:31:52generally what people want to do. go 1:31:53from beginner to profitable. But my dad 1:31:56told me that this is not the way that 1:32:00you should be going about trading.1:32:02Instead, you're actually skipping a very 1:32:05important 1:32:07part in the middle. And because you're 1:32:09not focusing on this part that's in 1:32:12between being a beginner and being 1:32:13profitable, you're actually, you know,1:32:17kind of going against yourself. You're 1:32:20actually, it's actually 1:32:21counterproductive. All right. So I want 1:32:23to explain what this is. So let's go 1:32:25ahead and erase this. And my dad told me 1:32:26that your first focus 1:32:30as a trader should not be to make money.1:32:33It should be to consistently not lose 1:32:38money. And that in other words is called 1:32:41breaking even. And my dad told me that 1:32:44if you're able to break even 1:32:48consistently 1:32:49every single day, you're able to not 1:32:52lose money, you're like 70% of the way 1:32:55there towards being a profitable trader.1:32:58So, honestly, we should actually uh move 1:33:00this. Let's see if we could actually uh 1:33:02let's move this 70%. It's more like down 1:33:05here, right? If you're able to 1:33:07consistently not lose money 1:33:10and consistently break even, you are 1:33:13like 70% of the way there to being a 1:33:15profitable trader. All right? Because 1:33:17not losing money consistently is huge,1:33:21right? And that means you already have a 1:33:24pretty good risk management system,1:33:25right? We'll do RM, risk management 1:33:28system. It means you're able to limit 1:33:31losses, which is huge, right?1:33:34And you probably also have a pretty good 1:33:36trading management system. Trading 1:33:38management, right? So, this should be 1:33:42your mindset. Instead of going into the 1:33:44markets every day thinking about, oh, am 1:33:46I going to make money today? Am I going 1:33:48to be profitable? Is this the first day 1:33:50I'm going to make my first thousand 1:33:51dollar? Instead, focus on, okay, my goal 1:33:54today is to not lose money. by the end 1:33:57of the day I either should be at zero 1:33:59dollars on the day or maybe up five $10 1:34:02a small amount right and you should 1:34:05approach you should think about break 1:34:08even days as winning days especially if 1:34:12you're just starting out right so if 1:34:14you're breaking even consistently 1:34:17right I want you in your mind to 1:34:19consider that a win consider that a 1:34:21victory right and then if you have one 1:34:24whole week where you where you didn't 1:34:26lose any money where you broke even the 1:34:28entire week. That's that's a winning 1:34:30week. That's a good week because a lot 1:34:33of traders, that's especially as 1:34:36beginners, you're not going to be able 1:34:37to make money right away. It's just not 1:34:39that easy. It's not that simple. As a 1:34:41beginner trader, 3 weeks later, you're 1:34:43making money. It's just not it doesn't 1:34:44happen, right? But a lot of traders when 1:34:47they're just starting out because 1:34:49they're not immediately profitable,1:34:52they're like discouraged. they like 1:34:55almost don't want to trade anymore 1:34:57because they're not making money, right?1:34:59And they're and when they do break even,1:35:01let's say, they don't really think of it 1:35:04as anything good. They're just like,1:35:05"Oh, whatever. I didn't make money.1:35:07Today was a horrible day." And that 1:35:09alters their mindset, right? And 1:35:12instead, I want you guys to treat break 1:35:14even days in the beginning as profitable 1:35:17winning days. And if you're able to 1:35:20consistently break even, break even,1:35:22break even, right? There are there are 1:35:25probably just a few small fixes that you 1:35:28have to make in your trading to become 1:35:31consistently profitable. All right? And 1:35:33honestly, this is the way that I thought 1:35:35about it. And even when I was even if 1:35:37you're paper trading, even if you're 1:35:39paper trading, right, which is trading 1:35:40with fake money, you're not trading real 1:35:42money. It's like practice trading. I 1:35:45still want you to focus on breaking even 1:35:47every single day. Okay? You can 1:35:49experiment. You could try different 1:35:50strategies. Of course, if you're 1:35:52experimenting, and if that experiment 1:35:54doesn't work out, yeah, you're probably 1:35:55going to lose money. But over time, if 1:35:58you're continuing to paper trade, I 1:36:00still want you to focus on breaking even 1:36:02consistently. All right? And that's what 1:36:05I did. I paper traded for 3 to four 1:36:06months. I think in hindsight, that was a 1:36:09bit too long, but I can't really 1:36:11[clears throat] go back in time and 1:36:12change that. But even when I was paper 1:36:14trading, I considered every single break 1:36:17even day a winning day. I considered 1:36:20that a victory. I considered that 1:36:22progress and it gave me momentum. Me 1:36:25thinking about breaking even in that 1:36:28way, right? Actually, you know, gave me 1:36:31more motivation. It gave me more 1:36:34momentum to continue studying, continue 1:36:37improving. You know what I mean? And I 1:36:40think that's I think that could be 1:36:42really helpful for helpful for 1:36:44essentially any trader. All right. And I 1:36:47remember at some point I'm like, "Wow,1:36:48I've been breaking even for a few weeks 1:36:49now." And then boom, I had my first 1:36:51winning day. I had my first consecutive 1:36:54winning days. And then all of a sudden I 1:36:56had my first week where I I made money 1:36:58every single day or with paper trading 1:37:00of course, but and that gave me even 1:37:02more momentum. And then when I started 1:37:05trading uh with real money on my first 1:37:08day guys, I made $711 1:37:10which is insane. Um it completely 1:37:13changed my world. But it was because you 1:37:15know for 3 4 months I was paper trading.1:37:17I had the right mindset and I was 1:37:18focusing on consistently improving.1:37:21Okay. And of course I had my dad, right?1:37:24That's really, you know, the game 1:37:26changer. You really ideally need a 1:37:28mentor if you want to be able to succeed 1:37:30super quickly. All right, guys. Um, so 1:37:34yeah, hopefully this helps you guys 1:37:36focus on breaking even if you're a 1:37:38beginner trader. That will give you 1:37:39momentum to eventually become 1:37:41profitable. If you guys haven't started 1:37:43watching my free 8 plus hour course,1:37:45it's listed on my YouTube. It's also in 1:37:48the description of this video. You can 1:37:49hop into my free community. You can 1:37:51watch the course, interact with other 1:37:52students, interact with myself. I do 1:37:55free classes every single Thursday.1:37:57They're live and I teach you kind of the 1:38:00framework on how to make your first 1:38:01$10,000 with trading. Make sure you go 1:38:03to those classes every single Thursday.1:38:05Very, very important. And yeah, if 1:38:08you're looking to take this a little bit 1:38:10more seriously, you're maybe you went 1:38:12through all my free uh courses and all 1:38:14that and you want to trade live with me 1:38:16every day, you want me to take you under 1:38:18my wing and mentor you, shoot me a DM on 1:38:21Instagram. I'm going to list that below,1:38:22Emanuel Trades, and I can give you more 1:38:24information about my mentorship program.1:38:26All right, hopefully this video helps.1:38:28Hopefully this video kind of changed 1:38:30your perspective and hopefully gave you 1:38:32a lot of motivation, especially if you 1:38:34are someone who is a break even trader.1:38:37Uh, this should hopefully have 1:38:39definitely helped you. So, see you guys 1:38:40on the next video.1:38:44Welcome to the price action chapter of 1:38:46this free course. And in this chapter,1:38:48I'm going to teach you everything you 1:38:50need to know about reading and 1:38:52interpreting price action. And keep in 1:38:54mind, as traders, we only look at price 1:38:58action when it comes to making our 1:39:01decisions. We're not looking at 1:39:02financial documents. We're not reading 1:39:04the news. We're not reading income 1:39:06statements. We are solely focusing on 1:39:09reading price action. And I'm going to 1:39:11teach you how to read candlesticks. I'm 1:39:12going to teach you what indicators I 1:39:14use. I'm going to teach you how to read 1:39:15volume, how to read support and 1:39:17resistance, relative strength in the 1:39:19markets, and everything you need to know 1:39:20to be a price action professional. So,1:39:23make sure you pay attention and let's 1:39:25hop right into this chapter. What is 1:39:28going on, guys? Hope you guys are having 1:39:30a great day and I'm very excited that 1:39:33you're watching this video and that you 1:39:36have committed yourself towards learning 1:39:38this course. And today we are going to 1:39:40be talking about a very very crucial 1:39:43element of price action. And remember 1:39:46price action is the only thing we use to 1:39:50perform technical analysis and you know 1:39:53analysis for trading when when it comes 1:39:55to trading stocks or crypto. Okay, these 1:39:59are the very fundamentals that you have 1:40:02to innately understand if you want to 1:40:05succeed with trading. This is the meat 1:40:08and potatoes of trading. It's the 1:40:10absolute basics. So my recommendation is 1:40:14get out get out a notebook, grab a pen 1:40:16or a pencil and make sure you take some 1:40:18notes so you really can digest this 1:40:21information. You need to understand this 1:40:24to move forward with the course. Okay.1:40:27So I have the pres presentation ready to 1:40:29go. So grab the pencil, grab the 1:40:31notebook, and I'm going to turn off this 1:40:33camera real quick. Very good. And let's 1:40:37get started. So we are going to be 1:40:39talking about candlesticks. Okay. And 1:40:43why do we use candlesticks? And 1:40:45candlesticks are the bars that you guys 1:40:48see on all of the price charts that, you 1:40:51know, we're viewing in the community or 1:40:52that you may have seen in the past. And 1:40:55those bars are, you know, they're 1:40:56candlesticks. And I'm going to give you 1:40:58guys a little bit of history of the 1:40:59candlesticks, why we're using them, and 1:41:02what they mean. So, number one, we're 1:41:04using Japanese candlesticks. And they 1:41:06focus on the open and the close of a 1:41:10bar. Okay? And we have to remember 1:41:13that, you know, when we're looking at a 1:41:15candlestick that represents a time 1:41:17frame. So, we're looking at the open of 1:41:19that time frame and then the close of 1:41:21that time frame. It's going to make a 1:41:23little bit more sense in a second here.1:41:26So, Japanese candlesticks, what they 1:41:29present is they show a graphic 1:41:32representation of the supply in demand 1:41:35for each time period's price action. And 1:41:38we have to remember that's what a that's 1:41:41how a market operates. It operates off 1:41:43supply and demand. Supply meaning the 1:41:45sellers and demand meaning meaning the 1:41:48buyers. Okay? That's how a market 1:41:50functions. There has to be buyers and 1:41:52there has to be sellers. And obviously 1:41:55if there's more buyers than sellers then 1:41:57the price is going to go up and if 1:41:59there's more sellers than buyers the 1:42:00price is going to go down. This is how a 1:42:02market functions. Okay? and candlesticks 1:42:06they give us a representation of that 1:42:10you know supply and demand of those 1:42:12buyers versus the sellers. Okay? And 1:42:16maybe a lot of you guys have seen bar 1:42:18charts um and versus candlesticks but or 1:42:22maybe you guys have seen like hyenashi 1:42:24candlesticks. I always 100% recommend 1:42:28Japanese candlesticks which are just the 1:42:30regular candlesticks on Trading View or 1:42:32whatever platform that you guys are 1:42:34using. They're way more visual. They 1:42:37give you a very clear picture on the 1:42:39price action that's occurring. And like 1:42:42I said, they emphasize the relationship 1:42:44between supply and demand. Okay? If we 1:42:46understand the supply and demand of what 1:42:50we're looking at, of the stock or crypto 1:42:51that we're that we're looking at, then 1:42:53we could take advantage,1:42:55you know, of that supply and demand and 1:42:57make a profit. That's the whole point.1:43:00And that battle between the buyers and 1:43:03the sellers, right? This supply and 1:43:05demand element that I'm talking about,1:43:08it's the most important part of 1:43:09technical analysis. This is what makes 1:43:11technical analysis. That's why it's so 1:43:14crucial for you guys to really pay 1:43:15attention and understand how to read 1:43:18these candlesticks. So, how are they 1:43:20formed? Right? And depending on which 1:43:23time frame you're looking at, a 1:43:24candlestick represents the price action 1:43:27that occurred during that time. So, if 1:43:29we're looking at a five-minute chart,1:43:31right? Each candlestick on that chart 1:43:34represents five minutes worth of time,1:43:36right? So, for example, you know, we 1:43:39talked about kind of the open and close 1:43:41of the candlestick.1:43:43Let's say it's uh 10 10:00 a.m., right?1:43:47And a 5m minute candle started forming.1:43:49At 10:00 a.m. the candle obviously the 1:43:515minute candle started forming and then 1:43:54at 10:05 the candle stopped forming and 1:43:57then the next candle started forming at 1:43:5910:05 and then at 10 10 that one closed 1:44:02and then another one starts forming. So 1:44:03you can see that every candlestick u 1:44:06represents you know a unit of time and 1:44:09obviously on fi on 15-minute chart 1:44:11charts every candlestick represents 15 1:44:14minutes worth of time and on daily 1:44:15charts every candlestick represents one 1:44:17day worth of time. You guys get the idea 1:44:20and if you might if you're asking 1:44:22yourself why are we looking at different 1:44:24time frames? I'm going to be talking 1:44:26about that later in the course, but it's 1:44:28very important that we're looking at 1:44:30several time frames and reading the 1:44:32candlesticks that are on uh several 1:44:34different time frames. And we're going 1:44:36to get into that a little bit later in 1:44:37the course. So, let's start with the 1:44:40absolute basics on how to read 1:44:42candlesticks. Like I said before,1:44:44candlesticks emphasize the open and the 1:44:47close of a bar, right? So if it's a 1:44:50green candlestick, that means price went 1:44:53up in that time frame, right? In that 1:44:57candlestick's time frame. So if it's a 1:44:58five-minute chart, that means price went 1:45:00up in that 5 minutes. If it's a 1:45:0115-minute chart, price went up during 1:45:03those 15 minutes. Okay? So the bottom of 1:45:07the candle or the the the body of the 1:45:10candle, this is known as the body. The 1:45:13bottom of it is where price opened. The 1:45:16top of it is where price closed, right?1:45:18And these little lines here, you can 1:45:20call them wicks or tails. They represent 1:45:23the absolute lows during that time right 1:45:26here. And the upper wick represents the 1:45:29absolute highs of price during that 1:45:32candle uh during that candle's time.1:45:35Okay. So, if it's green, it obviously it 1:45:37it closed higher than it opened. So,1:45:39that's why the you know, this is where 1:45:41it's closing. This is where it's 1:45:42opening. And the wicks, like I said,1:45:43highs and lows. If it's a red candle,1:45:46that means it opened at a higher price 1:45:50than it closed, right? That means it 1:45:52went down during that time frame. So, it 1:45:54closed at a lower price than which it 1:45:56opened. These wicks, they represent the 1:45:59the same thing, the absolute highs of 1:46:01that candlestick and the absolute lows 1:46:04of the candlestick right here. Okay? So,1:46:05if it's red, it went up. I'm sorry. If 1:46:07it's if it's red, it went down. If it's 1:46:09green, it went up. Okay?1:46:11And the one question we always have to 1:46:14be asking ourselves here is who won the 1:46:17battle, the buyers or the sellers. Okay,1:46:21so let's look at this diagram to have a 1:46:23better understanding of what different 1:46:27candlesticks mean and how you know 1:46:29different candlesticks can form. So 1:46:33first and foremost we have uh this is 1:46:35called a wide range bar. And this is one 1:46:38example where the candle opened at this 1:46:40price and closed at the absolute highs 1:46:44up here. Have you guys see there's no 1:46:47tails, right? There's no wicks. Meaning 1:46:50it opened at the absolute lows and it 1:46:53closed at the absolute highs. That's why 1:46:55we don't have any tails. This is a very 1:46:57bullish candle. Remember bullish means 1:46:59indicative of strength. meaning there's 1:47:01a lot of buyers. So, this is a, you 1:47:04know, a buyerheavy or buyer dominant 1:47:07candlestick.1:47:09If you look at this one, we have here 1:47:11what's called a topping tail. Okay? And 1:47:14we're going to talk about how topping 1:47:15tails are formed during the next slides,1:47:18but let's let's try to understand how a 1:47:20topping tail is formed here. So, we open 1:47:24at the absolute lows. We rally all the 1:47:27way up here to form a high. And then the 1:47:30sellers come in and they bring bring it 1:47:34all the way back down to close here.1:47:36Right? So we opened here. We went all 1:47:38the way up. Then we dropped and and 1:47:41closed here. So open here, closed here.1:47:45So you know this is a green bar, right?1:47:49A lot of you guys might be thinking, oh,1:47:50it's green. That must mean it's bullish.1:47:52It must means it's a buyerheavy candle,1:47:55right? Buyer dominant candle. But in 1:47:58reality, what happened here is we opened 1:48:00here, we got bought, and then the 1:48:03sellers came in, right? And they brought 1:48:07the stock or crypto all the way back 1:48:09down to close here. So although it's 1:48:10green, right, it's a very sellerheavy 1:48:14candle, right? So this is a topping 1:48:16tail. So if we go here, topping tail,1:48:18it's a clue that the sellers have taken 1:48:20control, right? Cuz the buyers brought 1:48:23it up to here and then the sellers are 1:48:25bringing it all the way back down. and 1:48:26the sellers have taken control. If we 1:48:29look at this candlestick,1:48:32[cough]1:48:33excuse me, you could see that the tail 1:48:37is actually on the bottom. So, this is a 1:48:40excuse me, guys. So, this is a bottoming 1:48:42tail and bottoming tails are a clue that 1:48:45the buyers have taken control, right?1:48:48cuz we opened at this price. The sellers 1:48:52sold it and brought it all the way down 1:48:55to here just for the buyers to come back 1:48:58here and bring it all the way back up.1:49:00Right? So, the sellers tried to bring it 1:49:03down, but then the buyers brought it 1:49:06right back up to finish at the highs.1:49:09Okay? And then right here, we have a 1:49:11dogee bar, right? where it's kind of um 1:49:14the battle between the buyers and 1:49:16sellers are even, right? Because it 1:49:19opened here, it went all the way up,1:49:21then it went all the way down, and then 1:49:23it finished here. So,1:49:26a dogee bar shows kind of uh uh a battle 1:49:30between the buyers and the sellers and a 1:49:32battle that nobody really won. They kind 1:49:34of finished even. Okay. Same thing with 1:49:38this bar. Obviously, the buyers won a 1:49:40little bit, but it's mostly it's kind of 1:49:41like a, you know, the sellers and buyers 1:49:44were very even. So, what I want you guys 1:49:46to ask yourself is looking at this 1:49:48candlestick, right? We know that it 1:49:50opened here and closed here. In this 1:49:52case, it opened here, dropped, and then 1:49:54closed here. So, I want you guys to ask 1:49:58yourself and maybe even pause the video,1:50:00which candlestick out of this one and 1:50:02out of this one is more bullish. which 1:50:05one is uh more indicative of strength?1:50:08So, pause the video, think about it, and 1:50:12uh come up with an answer, and I'll go 1:50:14over it just in a second here. I'll give 1:50:16you guys a chance to pause it.1:50:20Okay, very good. If you guys chose this 1:50:23one, then you would be correct. This one 1:50:25is a stronger candle than this one. And 1:50:28the reason is is for this one, right? It 1:50:30opened here. The sellers came in and 1:50:33then the buyers, you know, them were 1:50:35like, "Hold on, you know, you can't 1:50:37bring this any lower." And they brought 1:50:38it all the way back up. You can think of 1:50:40this bar is battle tested, right? The 1:50:42sellers actually showed up, but the 1:50:45buying pressure was so strong that it 1:50:47negated all the sellers and it brought 1:50:50the stock all the way back up to make 1:50:51new highs. In this case, we opened here 1:50:54and we sold here, right? We opened here 1:50:58and we closed here. We don't know if 1:51:00there were that many sellers during this 1:51:02bar. Maybe the sellers were sleeping.1:51:03They weren't there, right? This bar is 1:51:06actually battle tested, right? We had 1:51:08sellers shown up, but they were 1:51:10irrelevant. Here, we just kind of closed 1:51:12at the highs after opening at the lows.1:51:14So, this one is way more bullish.1:51:18Something to something to, you know, the 1:51:20buyers have really taken control. It's 1:51:21very buyerheavy.1:51:24Looking at the red candlesticks, guys,1:51:26it's the absolute same idea. We open 1:51:28here and then we close all the way at 1:51:31the bottom. There's no tails, meaning we 1:51:34open at the absolute um you know, we 1:51:37opened at the absolute highs, we closed 1:51:38at the absolute lows. Okay, if we have a 1:51:41topping tail here, what happened was we 1:51:44opened at this price, the buyers showed 1:51:47up, they brought it all the way up here,1:51:48and then the sellers came in and brought 1:51:50it all the way back down. So, a topping 1:51:53tail, guys, is a clue. The sellers have 1:51:55taken control. So, the sellers have 1:51:57really taken control. There's a lot of 1:51:59selling pressure during this topping 1:52:01tail here. It's kind of the same thing.1:52:04It's a dogee bar. The buyers and sellers 1:52:05are mostly even, right? There's there 1:52:08was a battle, but nobody really won the 1:52:10battle, right? In this case, what we 1:52:12have here is we opened 1:52:16we opened [snorts] at this price. We 1:52:18dropped all the way back down and the 1:52:20buyers came up. you know, they bought it 1:52:22down here. They brought it all the way 1:52:24back up and we still closed under the 1:52:27open, right? So, that's why it's still a 1:52:30red bar, but since the bottoming tail,1:52:33guys, it's a clue that the buyers have 1:52:34been taking control. So, even though 1:52:36this is a red bar, it's still a kind of 1:52:38a bullish bar. And although this is a 1:52:41green bar, it's still a kind of a 1:52:44bearish bar because we know that a 1:52:45topping tail is where sellers take 1:52:47control. A bottoming tail is where 1:52:49buyers take control. Hopefully that 1:52:50makes sense guys and let's kind of uh go 1:52:53into how they're actually formed right 1:52:56so if we have a fivem minute candle and 1:52:58and this diagram really shows that 1:53:02the importance of looking at different 1:53:04time frames because 1:53:06candles can form in different ways right 1:53:09this five-minute candle is the same is 1:53:12as this five-minute candle but they were 1:53:15they formed completely differently right 1:53:18here you know it's the All right, we 1:53:20have five one minute candles make up a 1:53:22five-minute bar. And here five minute or 1:53:25five one minute candles make up this 1:53:27five-minute bar. But in this scenario,1:53:30we have, you know, we have five candles 1:53:32that are going straight up, right? One 1:53:35after another, right?1:53:38While here we have a big rally and then 1:53:41kind of, you know, consolidation up 1:53:42here. Meaning the candles, they're just 1:53:44staying at the highs of this 1:53:45candlestick, right? They're just staying 1:53:47here at the highs. So this just this 1:53:49kind of um proves the point that 1:53:52candlesticks form in different ways and 1:53:54that's why it's important to look at 1:53:56different time frames because 1:53:59these two setups are different, right?1:54:02This has different implications than 1:54:03this does. Okay? And we're going to be 1:54:05talking about that later in the course.1:54:06But I just want to stress the importance 1:54:08now of looking at different time frames 1:54:11because if you know the candlesticks 1:54:14have formed in different ways that's 1:54:15going to give you information of what it 1:54:17might do next. Okay. So that's really 1:54:21what I want to emphasize. They could 1:54:22form in different ways and that's 1:54:24important. So if we look at for example 1:54:26a 15-minute candle, this is another 1:54:29example of how they're formed. Right 1:54:31here we have three fiveminute candles.1:54:34Here we have three fiveminute candles.1:54:35You could see this one's a little 1:54:37different. It's kind of a uh you know,1:54:39we have a rally and then we we just 1:54:42continue higher. Where here it's again 1:54:44rally and then we just stay at the 1:54:45highs. We don't really you know continue 1:54:48higher. So they're formed in different 1:54:49ways. Okay. And you'll see later on once 1:54:53we actually start talking about 1:54:54different strategies,1:54:56you'll start to really understand the 1:54:58importance of how the candlesticks are 1:55:00forming and and the patterns that 1:55:02they're setting up in and how they look 1:55:04on the charts on different time frames.1:55:06Okay? But I don't want to overwhelm you 1:55:08with all that information. Now, for now,1:55:10just understand that different 1:55:13candlesticks form in different ways when 1:55:16you look at, you know, the smaller time 1:55:17frames or the larger time frames. Okay?1:55:19So, that's what's important. So let's 1:55:22understand how bottoming tails are 1:55:23formed. So like I said, we open at this 1:55:26price, right? This is where we're 1:55:28opening and we drop. So right, so this 1:55:30is a larger time frame and by looking at 1:55:33the smaller time frames, we see more 1:55:35candlesticks. We see exactly how this 1:55:38candlestick was formed 1:55:40and what went into it.1:55:43So we open at this price.1:55:47Excuse me, guys. I'm just going to grab 1:55:48a sip of water.1:55:53>> [clears throat]1:55:54>> Sorry guys. So, we open at this price.1:55:57We drop all the way down to make 1:55:59absolute lows. And then the buyers show 1:56:02up and they bring it all the way back up 1:56:05to make new highs. So, this is a 1:56:07bottoming tail, guys. Remember, a 1:56:08bottoming tail. It's a clue. The buyers 1:56:11have taken control. And this it kind of 1:56:13makes sense, right? The sellers came in,1:56:15but then the buyers dominated. that 1:56:17brought it all the way back up to make 1:56:18new highs. So the these are this is kind 1:56:21of how this gives you insight on how a 1:56:23bottoming tail is formed. And at the end 1:56:25of the day, we see that the buyers have 1:56:27taken control.1:56:29Even if it's a red bottoming tail,1:56:31right, we have a a green one here. Even 1:56:33if it's red, you could still see that 1:56:36the buyers have taken control even 1:56:38though, you know, it still uh closed at 1:56:43a lower price than it opened. So, we 1:56:46opened here. We dropped all the way back 1:56:48down to make absolute lows. And then the 1:56:50buyers take control and they bring it 1:56:52almost back up to the highs, but you 1:56:54know, not quite. So, you could still see 1:56:56that the buyers have ended the move. The 1:56:59buyers have taken control. If we look at 1:57:02a topping tail, we open at this price.1:57:06We rally, the buyers come in, they it 1:57:08rallies, we make absolute highs, and 1:57:10then the sellers come in, they dominate,1:57:13and they bring it all the way back down 1:57:14to make new lows, and we close at a 1:57:17lower price than where we opened. That's 1:57:19why it's red. And we could see that the 1:57:22sellers have taken control. So remember,1:57:23a topping tail, very important, topping 1:57:26tail is when the sellers have taken 1:57:28control. Okay,1:57:31another example. Even when it's green,1:57:33we open at this price. Buyers come in,1:57:36they rally, we make absolute highs just 1:57:38for the sellers to show up and they end 1:57:40the move. And although it's green, we 1:57:42could still see that the sellers have 1:57:44taken control. Okay,1:57:47with a dogee bar, we we talked about how 1:57:50dogei bar represents a battle that 1:57:52neither the buyers or the sellers won.1:57:54And in certain circumstances, the dogee 1:57:57bar is a very effective reversal and 1:58:00entry bar. So, that's really important.1:58:02They a dogee bar is is an excellent 1:58:05entry bar and we're going to be talking 1:58:07about that a little later once we 1:58:08actually start going through uh through 1:58:10the strategies. Okay, so that's that's 1:58:13the end of this beginner candlestick 1:58:15class. And if you guys are a little bit 1:58:17confused on what these candlesticks 1:58:20actually mean, how to read them in 1:58:21sequences or, you know, actually 1:58:24applying this information, just stay 1:58:26tuned. It's all going to make sense as 1:58:28the course progresses. But please just 1:58:31make sure that you understand what a 1:58:32dogee bar means. You know how topping 1:58:35tail what topping tails mean, what 1:58:38bottoming tails mean, right? Um and just 1:58:41understanding that candlesticks form in 1:58:44different ways and looking at how a 1:58:47candlestick forms gives us a lot more 1:58:49insight on what's going on uh with that 1:58:52stock or with that crypto. But we're 1:58:54going to be talking and going more into 1:58:56detail as the course progresses. Just 1:58:58make sure you understand everything we 1:59:00talked about today. Okay, guys. Uh, let 1:59:03me put my camera up one more time. So, I 1:59:07would suggest also re-watching this 1:59:09video if you don't understand it 1:59:10completely. Guys, let me know if you 1:59:12have any questions and looking forward 1:59:14to seeing you guys in the next section 1:59:17of the course. Thank you guys. What is 1:59:21going on guys? Hope you're having a 1:59:22great day. During the last class, we 1:59:25talked about the basics of candlesticks 1:59:27and we learned some of the fundamentals 1:59:29of what candlesticks are, why we're 1:59:32looking at them, and what they really 1:59:33signify. And just for a reminder, they 1:59:36signify and they show the relationship 1:59:39between uh supply and demand, between 1:59:43the buyers and the sellers. And if we 1:59:45can understand the relationship between 1:59:47the buyers and the uh and the sellers 1:59:49and the candlesticks and we could see 1:59:51the patterns and the way that they form 1:59:53and understand what that means, we could 1:59:56take advantage of it and find, you know,1:59:59hopefully super lucrative trades. So dur 2:00:02during this class, we're going to be 2:00:04going to uh going into the advanced 2:00:06candlestick course. So, I'm going to 2:00:08share with you guys some additional 2:00:10details and some other types of 2:00:12candlesticks that are that are important 2:00:14to uh recognize. Okay. My recommendation 2:00:18is if you haven't watched the previous 2:00:20course, if you're still kind of uh 2:00:21confused on topping tails, bottoming 2:00:24tails, what candlesticks are, how they,2:00:26you know, uh show different time frames,2:00:28then definitely take a step back, maybe 2:00:32reach out to me, ask me some questions 2:00:33before you go into the advanced course.2:00:35Okay. So I'm going to turn off my 2:00:38camera. Perfect. And let us begin here.2:00:41So this is the advanced candlesticks 2:00:43course. Let's get right into it. So for 2:00:45mastering candlesticks, we have to 2:00:46really understand that some candlesticks 2:00:48are more important than others. And they 2:00:51give us uh different types of 2:00:53information that we could use to base 2:00:56off of when we go into trades. And there 2:00:59are very specific candlesticks that we 2:01:01are looking for when we time our entries 2:01:04into stocks or crypto, right? And later 2:01:08in the course when we actually talk 2:01:09about different strategies and different 2:01:12ways uh the candlesticks, you know, the 2:01:14different patterns that they could form,2:01:16um it's going to make a lot more sense 2:01:19and you're going to really see why we 2:01:22look for specific candlesticks in 2:01:24certain situations. And there are also 2:01:26specific candlesticks that we look for 2:01:28when finding reversals. And there are 2:01:31also specific candlesticks that can 2:01:32enhance trading strategies and increase 2:01:35the odds of success for a trade. So 2:01:39something that we need to emphasize is 2:01:41the way the candlesticks form. Number 2:01:44one, they give you different information 2:01:46about what's happening in the trade. And 2:01:47they also make trades a lot more potent 2:01:50where if you find a specific pattern or 2:01:52a specific strategy,2:01:54you know, having some specific type of 2:01:58candlestick that we're looking for can 2:01:59greatly increase the odds of that 2:02:01strategy working and you actually making 2:02:03money. So, that's why it's important to 2:02:05pay attention here and master the 2:02:08candlesticks that we're about uh to 2:02:09learn about. So as a reminder, topping 2:02:13and bottoming tails, really important 2:02:14that you guys know this. Topping tails 2:02:16right right here. Tail at the top 2:02:18suggests that the sellers have taken 2:02:20control, right? The sellers have taken 2:02:23control for both, you know, the green 2:02:25and the red bar. For bottoming tails,2:02:28it's the opposite. It suggests that the 2:02:30buyers have taken control. Really 2:02:32important that you guys that as soon as 2:02:34you guys see these sort of candlesticks,2:02:37you know exactly what they mean. And 2:02:40these bars are are going to provide you 2:02:42lots of insight on the price action 2:02:44that's occurring with stocks or crypto.2:02:46Okay? And it's really useful when we 2:02:49pair these sort of candlesticks with 2:02:51with the strategies that we're going to 2:02:52be learning. It's all about pairing 2:02:55things together to create a more potent 2:02:58trading setup. Okay. So now let's go 2:03:02into narrow range bars. and a narrow 2:03:06range bar. They are bars that have a 2:03:08small distance between the high and the 2:03:11low of that candlestick, meaning there 2:03:13really isn't all that much price action 2:03:16that's happening, right? There's not,2:03:19we're going to see an example in a 2:03:20second here. It's going to make a little 2:03:21bit more sense. Um, they are pretty 2:03:23significant when they occur after a 2:03:25multiar move because, you know, they 2:03:28might serve actually as a reversal 2:03:31candlestick. It gives you uh kind of 2:03:33more [snorts] evidence that a reversal 2:03:35might take place, right? And they're 2:03:38also especially useful uh useful for buy 2:03:40setups, one two three patterns, and 2:03:43reversal setups. And we are going to 2:03:46cover that when we actually start with 2:03:48the strategy section of the course. So 2:03:50let's let's look at what they are. Here 2:03:52we have normal ranged bars, right? You 2:03:55see a big bar like this opened at this 2:03:58price, right? dropped to these lows,2:04:01went all the way up to these highs, and 2:04:03closed here. Same thing with this. These 2:04:05are kind of normal range bars. These are 2:04:07what narrow range bars look like.2:04:09Whoops. You could see that there's not 2:04:11that much distance between the open and 2:04:13the close, right? The open and the 2:04:15close. They're kind of smaller 2:04:17candlesticks, right? So, these are what 2:04:19they look like. So, if you see a bar 2:04:22candle like this, just know it's a 2:04:24narrow range bar. Okay? Okay, make sure 2:04:25you you're able to identify that wide 2:04:28range igniting bars. Okay, this is also 2:04:31really important to be able to recognize 2:04:34a bullish wide range igniting bar is an 2:04:37above average size bar that has its open 2:04:40price near the lows of that time period 2:04:43and its close price near the highs of 2:04:45that time period. And it suggests that 2:04:48it's very bullish and that many traders 2:04:50are playing long. And we actually uh saw 2:04:54what this looks like during the beginner 2:04:56uh course. However, I'm going to show 2:04:58you guys another example in a second. A 2:05:00bearish a bearish wide range igniting 2:05:03bar is an above average size bar that 2:05:06has its open price near the highs of 2:05:08that time period and its close price 2:05:10near the lows of that time period.2:05:12Suggest many player uh many traders are 2:05:14playing short.2:05:16So, this is a great example of what they 2:05:18look like. Just give me one second. I'm 2:05:20going to have a sip of water. for one 2:05:21side.2:05:24[snorts]2:05:25So why are they bullish wide r or 2:05:29bullish or bearish wide range igniting 2:05:31bars? Because here the open is near the 2:05:35lows, right? And the close is near the 2:05:39overall highs, right? We don't have a 2:05:41large bottoming tail. We don't have a 2:05:43large topping tail. Same thing here. We 2:05:45opened near the highs. We closed near 2:05:48the lows.2:05:50And these bars show you that there is um 2:05:54a new move that's being ignited,2:05:58especially when it's coming from a 2:05:59consolidation. And we're going to I'm 2:06:02going to show you guys examples of that 2:06:03later. Okay? But the whole point what 2:06:05you just make sure you recognize that 2:06:08these are igniting bars, okay? They're 2:06:11bullish or bearish wide range igniting 2:06:13bars. Make sure you're able to spot one.2:06:17Okay? And that's really all we're going 2:06:19to talk about. So, for this class, if 2:06:22you're still a little confused on how 2:06:25we're going to use these candlesticks,2:06:26don't worry. We're going to address 2:06:27that. The whole point of these two 2:06:29candlestick lessons is to, you know,2:06:32make sure that you guys familiarize 2:06:34yourself with with, you know,2:06:37identifying, you know, for example, wide 2:06:38range igniting bars, narrow range bars,2:06:42uh, bottoming tails, topping tails. You 2:06:44should know when you see a candlestick 2:06:48um that's for example a topping tail,2:06:49you should be able to immediately say,2:06:51"Hey, that's a topping tail. I know what 2:06:52I'm looking at." Or if you see a narrow 2:06:54range bar, uh it's important to look at 2:06:57that and be like, "Okay, that's you 2:06:59know, identify it for what it is."2:07:01Right? So, once you understand all of 2:07:04these candlesticks, uh how candlesticks 2:07:07show you different time frames, right?2:07:09What's the point of them, you're going 2:07:10to be able to move on to the next 2:07:12section. Okay guys, so hopefully this 2:07:15makes sense. Please reach out to me if 2:07:16you have any questions. And if you're uh 2:07:20you know, if you understand everything 2:07:22we've done so far with the candlesticks,2:07:23you're finding it easy, then that's 2:07:26great because you already just learned a 2:07:28crucial part of price action, a crucial 2:07:31part of reading technical analysis, and 2:07:34you're well on your way uh to finding 2:07:36trades, understanding what the 2:07:39candlesticks are doing to certain 2:07:41patterns. And it's going to make a lot 2:07:43more sense once we go over the strategy 2:07:45section. But proud of you guys for uh 2:07:48sticking with it so far and I'll see you 2:07:50in the next class. Thank you. What's 2:07:53going on guys? Hope you're having a 2:07:55great day. For today's class, we are 2:07:57going to be talking about the three 2:08:00different trends that exist in trading 2:08:03and with price action. Okay. So these 2:08:07are super basic trends that you guys 2:08:10should know how to identify and you know 2:08:14you should know the implications of 2:08:16these trends as well. So let's get right 2:08:18into it. The three different trends.2:08:21This is probably stuff that uh you've 2:08:23heard of you've heard of already. So 2:08:26when we're looking at an uptrend, it's 2:08:28characterized by two different 2:08:31characteristics. number one, higher 2:08:34highs and higher lows, and number two, a 2:08:38rising 20-day moving average. So, we 2:08:41haven't covered how to use the 20-day 2:08:43moving average, but just always keep in 2:08:46mind that we want a rising 2:08:50and a trending higher 20-day moving 2:08:52average. Okay, so as you can see, we 2:08:56have higher highs, right? We're making 2:08:58new highs 2:09:00and we're making higher lows, right?2:09:03This low is higher than that low. This 2:09:05low is higher than that low. Same with 2:09:07the highs. Okay? And as you can see,2:09:10this line, the black line, which is the 2:09:1320-day moving average, it's under price 2:09:16and it's also uh trending higher. And 2:09:20we're going to be doing the 20-day 2:09:22moving average class next. So, just stay 2:09:25tuned for that. Okay, so this is what an 2:09:28uptrend is. Very simple stuff. We're 2:09:31looking at a downtrend. It's 2:09:32characterized by number one, lower highs 2:09:36and lower lows, okay? We have lower 2:09:39highs,2:09:41right? And lower lows. So low here, low 2:09:45here, lower here. And as you can see, we 2:09:48have a declining 20-day moving average,2:09:51which is this line. So, as you can see,2:09:52during a downtrend, we want the 20-day 2:09:55moving average to be over price, right?2:09:58And we see that 2:10:00during the downtrend, it sort of 2:10:02retraces, right? During the it always 2:10:04rallies right to the 20-day moving 2:10:06average, drops, rallies right to the 2:10:0820-day moving average, drops, but we're 2:10:09going to be looking at the 20 MA uh 2:10:12during the next class. So, this is what 2:10:14a downtrend looks like. Lower lows,2:10:16lower highs. Okay?2:10:19And we also have a sideways trend which 2:10:21is characterized by relatively equal 2:10:24highs and lows. Right? We rally, we make 2:10:27a high, we drop right to the previous 2:10:31low, we rally to the previous highs,2:10:33drop to the previous low. Okay? And once 2:10:37we talk about support and resistance,2:10:40this is going to make a lot more sense.2:10:42But this is what a sideways trend is. So 2:10:45sideways trend it's not you know we 2:10:49don't have u one particular bias we 2:10:51don't have a bullish bias or a bearish 2:10:53bias right overall we're just sort of 2:10:56fluctuating between the highs and the 2:10:59lows okay so this is what a sideways 2:11:01trend is um and usually sideways trends 2:11:05they uh lack momentum right so with uh 2:11:10uptrends and downtrends we clearly know 2:11:12what the what the momentum is right For 2:11:14an uptrend, there's clearly bullish 2:11:16momentum, right? We're we're rising.2:11:18There's a lot of buyers, right? Over 2:11:21with a downtrend, there's a lot of 2:11:22bearish momentum. There are a lot more 2:11:23sellers. You know, the sellers are 2:11:25dominating the move. But with a sideways 2:11:28trend, it's it's really there's no clear 2:11:30momentum. We we don't know exactly are 2:11:32the buyers winning or are the sellers 2:11:34winning just because, you know, we're 2:11:36kind of fluctuating between the highs 2:11:38and the lows. Okay, here's an example of 2:11:40a 2:11:42of a uptrend. This is a real chart with 2:11:44candlesticks as you can see right. We 2:11:47can see that we made a high here. We 2:11:49made a low here. This low was higher 2:11:52than this low. This high was higher than 2:11:54that high. Right here also make a higher 2:11:58high. Higher low. And as we continue 2:12:00going up, you can see that we're 2:12:02continuously making higher highs and 2:12:05higher lows. This blue line is the 2:12:0720-day moving average. Okay. And as you 2:12:11can see, there's probably a ton of 2:12:13candlesticks that you're already able to 2:12:15identify, whether it's a topping tail,2:12:18bottoming tail, narrow range bar, wide 2:12:19range, igniting bar, which is really 2:12:22good, or dogey bar as well. So, if 2:12:24you're already looking at these 2:12:25candlesticks and you're able to identify 2:12:27the different ones that we've learned 2:12:28about, that's fantastic. Looking at a 2:12:30downtrend, or actually, this is a 2:12:32perfect example of an uh of an uptrend 2:12:35uh and that that's followed by a 2:12:38downtrend, right? We could see here this 2:12:40white line is the two uh is the 20-day 2:12:42moving average. We could see we're 2:12:44making higher highs, higher lows until 2:12:49we actually reverse. And now we make 2:12:52lower highs and lower lows. Right? So 2:12:55we're uptrending, then we go into a 2:12:57downtrend. And this is actually 2:12:59screenshot of the NASDAQ ETF, the QQQ.2:13:04Um so this is this is a very recent 2:13:06snapshot. So you could see that we went 2:13:08from an uptrend to a downtrend, right?2:13:10Uptrend is higher highs, higher lows.2:13:12Downtrend is lower lows, lower highs.2:13:15Okay, hopefully that makes sense. So 2:13:18just make sure you're able to identify 2:13:21whether an uptrend or a downtrend or a 2:13:23sideways trend is occurring. Okay, guys.2:13:27And during the next class, we're going 2:13:29to be talking about the 20-day moving 2:13:31average, which is this white line. And 2:13:34I'm really excited to talk about that.2:13:36It's uh extremely important and 2:13:39hopefully this all makes sense guys. And 2:13:41uh so now you guys should be pretty 2:13:43familiar with identifying several 2:13:46different types of candlesticks and also 2:13:48identifi identifying different types of 2:13:51trends that are occurring as well. All 2:13:53right guys, have a good day. See you in 2:13:55the next class. Bye. So I made $1,163 2:14:00yesterday using all of the concepts that 2:14:02I'm going to teach you in this video.2:14:05So, I highly recommend watching until 2:14:08the end of the video because this can 2:14:09truly be transformative for your 2:14:12trading. This is my think or swim 2:14:15screenshot on my phone. So, it shows you 2:14:18all of my winning positions. It also 2:14:20shows you all of my losing positions.2:14:22And this is my Think or Swim screenshot 2:14:24on my desktop. As you can see, May 9th,2:14:263:53 p.m., $11,163.2:14:30And I've had a lot of people that have 2:14:31commented under my videos, hey, why 2:14:34don't you show your profits and your 2:14:36results on your actual brokerage account 2:14:39on your Schwab. So, I listened and here 2:14:41they are. Yesterday, May 9th, I made 2:14:44$10,831.2:14:46The reason for the small discrepancy,2:14:48it's around a $300 dis uh difference, is 2:14:50because Schwab takes off exchange fees 2:14:54um at the end of the trading day. So,2:14:56this is my profits after fees. So, this 2:14:59is for yesterday, May 9th. May 8th,2:15:022025, I made $4,98.2:15:05May 7th, uh, Wednesday, I made $5,44.2:15:08May 6th, that was on Tuesday of this 2:15:10week, I made $4,800.2:15:12And May 5th, Monday, I made $2,879.2:15:17So, if you do the math, it adds up to 2:15:20around $27,500 2:15:22in profit for me this past week. And the 2:15:25reason I'm showing you this isn't to 2:15:26boast. It's not to brag, but it's to 2:15:28show you that I actually do this for a 2:15:30living. Everything that I'm going to be 2:15:32teaching you in this video, I personally 2:15:35do to make money in the markets. And 2:15:37there are way too many trading educators 2:15:39that try to teach you how to trade, but 2:15:41they don't actually trade themselves. I 2:15:43want to be as transparent and as real as 2:15:46possible. So, now that you know that 2:15:47this actually makes me money almost 2:15:50every single day, let's go ahead and hop 2:15:52right into the video. To preface this 2:15:54video, what I'm about to show you isn't 2:15:56revolutionary. It's not brand new. It's 2:15:59literally existed forever, but it is 2:16:01unbelievably powerful if you know how to 2:16:04apply it correctly. And the best part is 2:16:06it is extremely simple to use. And in 2:16:09this video, I'm going to show you how I 2:16:11practically use this tool. I'm going to 2:16:14show you trades that I took this week 2:16:16and how I was able to use this tool to 2:16:19my advantage and make $27,000 this past 2:16:22week. And this mystery tool is the 20 2:16:26period simple moving average. And I 2:16:28guarantee there are people that are 2:16:29watching this video that are thinking to 2:16:31themselves, simple moving average, what?2:16:34Like I thought he would be using MACD or 2:16:36RSI or Ballinger bands or VWAP or 2:16:39stochastics or Elliot wave theory, all 2:16:41these complicated indicators. And no, I 2:16:44do not. The only tools that I use are 2:16:48the 20 SMA, the 200 SMA, 200 period 2:16:52simple moving average and volume, but 2:16:55mainly it's the 20 period simple moving 2:16:58average. I like to keep my trading 2:17:00simple. Trading is already hard enough 2:17:03given the fact that it's so 2:17:04psychologically and emotionally 2:17:06demanding. Like you have to be really 2:17:08disciplined to be a good trader. That's 2:17:10already hard enough. Why would I want to 2:17:12over complicate my trading using crazy 2:17:15complex indicators uh you know super 2:17:18cluttered charts looking at four or five 2:17:20different things to analyze a stock? No,2:17:22I don't want to do that. I like to keep 2:17:24it as simple as possible and that's why 2:17:26I use the 20 MA, right? It's because of 2:17:28the simplicity, but it is so powerful if 2:17:31you know how to use it, which I'm going 2:17:32to show you in this video. And what is 2:17:35the simple uh moving average, the 20 MA?2:17:38It essentially tracks roughly the last 2:17:40one month of trading data data and it 2:17:42represents that price action in a line.2:17:45That is all it is. It is a line that 2:17:48helps us trade. There are other moving 2:17:50averages like the 10 MA, the 50 MA, the 2:17:54100 MA, the 200 MA. And I really like 2:17:57the 20 because it's not too reactive 2:18:00like the 10 MA. Like if you get violent 2:18:02swings in price, the 10 MA is going to 2:18:04react super crazy. but it's also not too 2:18:07slow like the 50 MA or the 100 MA. It's 2:18:10like that perfect uh sweet spot where it 2:18:13represents the last one month of trading 2:18:15data. Now, I also use the 200 period 2:18:18simple moving average mostly for support 2:18:20and resistance and that is kind of like 2:18:22my long-term moving average. So, I like 2:18:25to use the 20 SMA for my medium-term and 2:18:28200 MA for my long-term moving average.2:18:30And the reason I use the 20 MA is 2:18:33because it is the ultimate trend 2:18:36following tool in existence. And a lot 2:18:39of people ask me why does it work? Like 2:18:41a lot of my students when they learn how 2:18:43to use it, they apply it in their 2:18:44trading, they would ask me why does this 2:18:46actually work? Like what's the reasoning 2:18:48behind it? And I've wondered this as 2:18:49well. And I honestly think it's because 2:18:51it's like a self-fulfilling magnet.2:18:53There are so many traders, institutions,2:18:57algorithms that use it that price just 2:19:00respects it in an unbelievable way that 2:19:03you're about to see. And you know, at 2:19:06the end of the day, I'm not sure exactly 2:19:08why it works, but it works. And that's 2:19:11the only thing that I really need to 2:19:13worry about. So, let's hop into how to 2:19:16actually use it. Number one, the main 2:19:19point here is the 20 MA is not effective 2:19:24when prices are sideways. It is only 2:19:28effective when prices are in a strong 2:19:31uptrend or downtrend or there's strong 2:19:34momentum in one direction. We don't ever 2:19:37want to see a flat 20 MA. A flat 20 MA 2:19:42isn't really useful. It's not effective 2:19:45for our trading. What we want to see is 2:19:47a rising 20 MA if it's an uptrend and we 2:19:52want to see a declining 20 MA if it's a 2:19:56downtrend. All right, so like I said,2:19:58this is the ultimate trend following 2:20:01tool in existence. And trends, whether 2:20:04that's an uptrend or a downtrend,2:20:06respect the 20 MA in this fashion where 2:20:09you have the 20 SMA, it's under price,2:20:13trending higher. All right? Right. And 2:20:15if you ever if you've ever been to one 2:20:16of my free classes, you've heard kind of 2:20:19like the jingle, the song that I use.2:20:21Under price, trending higher, under 2:20:23price, trending higher, under price,2:20:25trending higher. I literally want you to 2:20:26sing it to yourself so you can like 2:20:28cement it in your head. We want the 2:20:30moving average to be under price,2:20:33trending higher during an uptrend. And 2:20:36the opposite applies during a downtrend.2:20:38We want it to be overpric 2:20:41trending lower. Over price, trending 2:20:43lower. if it's in a downtrend in this 2:20:45way, right? Rising 20 MA and we have an 2:20:48uptrend. And what you're going to see is 2:20:51that within that trend, prices respect 2:20:54the 20 MA. They trade off of it where 2:20:56you could have a pullback into that 2:20:58rising 20 MA, right? You could also have 2:21:00a consolidation 2:21:02into that 20 MA. And the same thing 2:21:05applies if it's a downtrend. All right?2:21:08So, we get a move lower [snorts] um and 2:21:11then we retrace into the declining 20 2:21:12MA. move lower, retrace into the 2:21:15declining 20 MA. That's what you really 2:21:17need to understand. Let's go ahead and 2:21:19look at some examples. So, step number 2:21:21one, we have an established downtrend,2:21:24and that's extremely important. We have 2:21:27lower highs, lower lows. Now, number 2:21:30two, what is the moving average doing?2:21:32The 20 SMA is overpriced and declining.2:21:36You could you could see how it is 2:21:38declining lower and overpriced. That's 2:21:40exactly what we want to see. So, we have 2:21:42this initial consolidation 2:21:45directly into the declining 20 MA right 2:21:47here and then we get the breakdown.2:21:49Exactly what we want to see. Look at 2:21:51this. We consolidate directly into the 2:21:5420 MA. Literally, as soon as it touched 2:21:56the moving average, that's when we broke 2:21:59down. And if you've watched my free 10 2:22:02plus hour course, which I highly 2:22:04recommend that you do, it'll completely 2:22:06build the foundation behind your 2:22:08trading. It's 100% free. It is genuinely 2:22:11better than most paid courses on the 2:22:13internet. It's in the description of 2:22:15this video, so you could begin watching 2:22:16it literally as soon as you finish this 2:22:19video right here. I actually also teach 2:22:21about the 20 MA in the free course, but 2:22:23you could use all of that education and 2:22:25combine it with this YouTube video as 2:22:27well. But if you've watched it, you know 2:22:29that I only really trade two types of 2:22:32strategies, and they are correction 2:22:34strategies. And I'll get to what that 2:22:36means in just a second. But the only 2:22:38strategies I trade are really you get a 2:22:41move higher, you get a dip, then it sets 2:22:44up as a buy setup, and then I'll trade 2:22:46the continuation higher in that uptrend 2:22:48or it moves up, it consolidates, and 2:22:52then I will trade the breakout. This is 2:22:54essentially the foundation of my 2:22:56strategies. I keep it very simple. These 2:22:59are really the only strategies I trade,2:23:00as you'll see later in this video when I 2:23:03break down my real trades. But that's 2:23:04what we got here. consolidation 2:23:07breakdown, consolidation, breakdown, and 2:23:10I use the 20 period moving average as my 2:23:15way of knowing when to position myself 2:23:18into the trade. All right, let's look at 2:23:20a at another example here. And honestly,2:23:23just just I don't even need to explain 2:23:25it. It's so simple to look at. Just look 2:23:29at how many times price respects the 20 2:23:34MA within this uptrend. Like as soon as 2:23:36it started curling here, this was kind 2:23:39of like the start of the uptrend right 2:23:41here. It kind of almost touched it right 2:23:43here. Right here. Right here. It 2:23:46literally touched the tail touched it.2:23:48The tail touched it right here and then 2:23:50immediately started moving higher.2:23:51Right. Let me move this here.2:23:54Okay. Same thing. So here again, hit the 2:23:5820 MA started rallying. Hit the 20 MA.2:24:01The tail touched the 20 MA. it it kind 2:24:03of broke through the 20 period moving 2:24:05average here, immediately got rejected 2:24:07to the downside, and then continued 2:24:08higher. Especially right here, you could 2:24:10see like it's obvious, it's simple, and 2:24:13that's the reason why I use it. Even 2:24:14like any beginner could look at this and 2:24:16being and be like, "Yeah, wow. Price 2:24:19really respects the 20 period moving 2:24:21average during an uptrend." And every 2:24:24single time it touched the 20 MA, if you 2:24:27went long, you would have made money,2:24:29right? Just so it's a little bit clear.2:24:31Every time it touched the 20 MA, if you 2:24:34went long, you would have made money 2:24:36every single time during this uptrend.2:24:38And that's exactly why I used a 20 2:24:40period moving average. I'm not saying 2:24:41you should have went long. I'm not 2:24:43saying every single one of these 2:24:45pullbacks, every single buy setup here 2:24:47is a quality setup, but if you just 2:24:49bought it every time it hit the 20 MA,2:24:51you would have made money. This is 2:24:53actually a chart of Bitcoin at $30,000.2:24:58I think this was like the 4hour chart or 2:25:00maybe the daily chart. I don't even need 2:25:02to explain it what's going on. It's 2:25:04simple enough for any beginner to look 2:25:07at this and immediately understand 2:25:09what's going on. Right? Let me get the 2:25:10pen tool. We moved up. Then we kind of 2:25:13retraced and then consolidated into the 2:25:17rising 20 MA. Right? What's the 20 2:25:19period moving average doing? It's under 2:25:20price, trending higher, under price,2:25:23trending higher, under price, trending 2:25:24higher. You got you guys get the idea.2:25:26[snorts] Soon as it hit the 20 MA 2:25:28breakout did the same thing based 2:25:30directly into the 20 period moving 2:25:32average literally touched it boom 2:25:35massive breakout. So in this case how 2:25:37would I enter the trade? So for a 2:25:39breakout like this I would either enter 2:25:41above the base right here or if you want 2:25:44extra confirmation you could uh enter 2:25:46above the base here and then where's 2:25:48your stop loss? Below the base and I 2:25:52mean it would have made you a ton of 2:25:53money. Very high reward to risk trade.2:25:55And this is why I use the 20 MA. It's 2:25:57simple, but it is a gamecher during 2:26:00uptrends or downtrends, during trending 2:26:03markets. And I would argue that we as 2:26:07traders should only be trading during 2:26:10trending markets. It's super cliche, but 2:26:13the trend is your friend. Why would you 2:26:16trade in a sideways market when there's 2:26:19no clear direction? I want to trade in 2:26:22the direction of the trend. the markets 2:26:24are telling me, hey, I'm going in this 2:26:26direction, whether it's higher or 2:26:28whether that's lower. I identify that 2:26:30and I think to myself, okay, cool. The 2:26:33markets are telling me prices are 2:26:34higher. We're in a trend. I want to go 2:26:37in the direction of that trend. Because 2:26:40the probability that I'm going to make 2:26:41money increases because I'm trading with 2:26:44the direction. It's like if you're 2:26:45driving on the highway, would you want 2:26:47to drive with the flow of traffic or 2:26:50against the flow of traffic? Well, if 2:26:52you drive against the flow of traffic,2:26:53you're probably going to crash into a 2:26:55car. It's dangerous. The same thing 2:26:57applies for trading. Why would I try to 2:27:00catch the top and go for reversals when 2:27:02I could trade with the trend? Now, I 2:27:05still do trade reversals. However, they 2:27:07are inherently more difficult than 2:27:10trading with the trend. I see way too 2:27:12many beginners that only trade 2:27:14reversals. It's like you guys are making 2:27:16it harder for yourself. Trade with the 2:27:18trend. And once you get a little bit 2:27:20better as a trader, once you're, you 2:27:22know, you have a little bit more 2:27:23finesse, you know what you're doing, you 2:27:24have more experience, you have more 2:27:26reps, that's when you can begin getting 2:27:27aggressive with reversals. All right,2:27:30hopefully all of that makes sense. Now,2:27:32like I just showed you, I trade either 2:27:34breakouts or retracements, and that's 2:27:36how I use the 20 period moving average.2:27:38And what you want to do is time your 2:27:40entries when prices are either at or 2:27:44near the 20 MA. don't need to be like 2:27:47literally touching the 20 MA for you to 2:27:50position yourself in the trade, but they 2:27:51have to be at or near the 20 MA. So,2:27:55that's a rising 20 MA. If it's an 2:27:57uptrend, like we have right here, rising 2:27:5920 MA, we want to be buying at or near 2:28:02the 20 period moving average, right? And 2:28:04the opposite applies during a downtrend.2:28:07You have a downtrend, we want to be 2:28:08buying or in this case, shorting at or 2:28:12near the 20 MA, right? In this case, it 2:28:14perfectly touched the 20 MA, but you're 2:28:15not always going to get that. And then 2:28:17there's and and that begs the question,2:28:19why why does it need why do prices need 2:28:22to be near or at the 20 MA? Because 2:28:25there's this concept called extension.2:28:28The way you can think of this is the 2:28:30greater the distance 2:28:33uh between price and the 20 MA that is 2:28:36known as extension. You can think of 2:28:38extension as overbought if it's like you 2:28:42know in an uptrend going you know if 2:28:44it's moving up or oversold if it's in a 2:28:47downtrend. We don't want to be buying or 2:28:50positioning ourselves when prices are 2:28:53extended. We want to be positioning 2:28:55ourselves when prices have corrected 2:28:58when they're near the 20 MA. So you 2:29:01could use the 20 MA for that. You could 2:29:03use it for measuring how overbought or 2:29:06how oversold a stock or a crypto or 2:29:09forex pair or whatever your trading is.2:29:12All right? And we ideally always want to 2:29:14be getting into it when it's near or at 2:29:17the 20 MA. So, you could actually use 2:29:19this idea of extension of prices being 2:29:22super far away from the 20 MA for 2:29:24reversal opportunities like this right 2:29:27here. Like take a look at this. Let me 2:29:30get the pen out and let me make it white 2:29:31so you could see it. Take a look at 2:29:33this. Look at how well prices have 2:29:36respected the 20 MA during the uptrend.2:29:39Check this out. Literally perfectly 2:29:42perfectly 2:29:43every single time it touched the 20, it 2:29:46went up. You would, if you went long,2:29:48every time it hit the 20, you would have 2:29:49made money. Except right here. Notice 2:29:51how it started to kind of go parabolic 2:29:55right here. and all of a sudden we had 2:29:57extension between price and the 20 MA.2:30:01This is when a trend is exhausted. When 2:30:04a trend is exhausted, that means the 2:30:06trend is beginning to end. Funny enough 2:30:09that rhymes, but hopefully that makes 2:30:11sense. And the way you can measure 2:30:13whether a trend is exhausted is the 2:30:15distance between price and the 20 MA.2:30:19Right? So in this example right here,2:30:21you could see that there's kind of 2:30:23distance between price and the 20 MA.2:30:25And if you want to see what happened 2:30:27right after, well, I have that 2:30:29screenshot. This is what happened.2:30:31That's when the trend ended and we 2:30:34actually moved lower and then we ended 2:30:36up rolling over and kind of going 2:30:37sideways and almost actually starting a 2:30:39downtrend right after this, right? So,2:30:42as soon as the trend was exhausted, this 2:30:44is actually a really good opportunity to 2:30:46potentially catch a reversal and go 2:30:48short. So, you could use the 20 MA for 2:30:51reversals as well, right? um by 2:30:55identifying when the trend is exhausted 2:30:57and then positioning yourself going 2:30:59against the trend because you know trend 2:31:01is exhausted there's not enough buyers 2:31:03there's not enough buyers we're probably 2:31:04going to see lower prices and that's 2:31:06when we can position short so in this 2:31:07case I would probably enter enter 2:31:09underneath the lows of this bar as a 2:31:12short stop-loss over the highs all right 2:31:14I don't want to get too into reversals 2:31:15in this video but hopefully that makes 2:31:17sense here's a really good example of 2:31:19that real fast before we hop into the 2:31:21more practical stuff I don't want this 2:31:22video to be too long 2:31:24We we made a massive move, right? The 2:31:27trend was kind of exhausted, massive 2:31:30distance between price and the 20 MA.2:31:32And this is precisely where you can look 2:31:34to go and play the reversal and and uh 2:31:37capitalize on prices moving up and you 2:31:40know catching this long. So hopefully 2:31:42that makes sense. So we usually want to 2:31:44do the 20 MA within an uptrend or a 2:31:46downtrend. However, you can use it 2:31:47during reversals if the trend is 2:31:50exhausted, if there's major distance 2:31:52between price and the 20 MA. Hopefully,2:31:56this makes sense. And let's go ahead and 2:31:58hop right into the reall life examples.2:32:01One thing that I definitely want to 2:32:02emphasize before we continue is that 2:32:05when you are trading within an uptrend,2:32:07whether it's a a breakout or whether 2:32:09it's a retracement, you're essentially 2:32:11trading the idea of price correction.2:32:14the idea that if a if the market moves 2:32:17up significantly, right, we need to see 2:32:20a price correction before we can make 2:32:23another leg up. Like in this case, we 2:32:25moved up significantly, we retraced and 2:32:29then we consolidated into that rising 20 2:32:32MA. As we were consolidating, we were 2:32:36correcting. Prices were performing a 2:32:38correction before it was ready to run 2:32:41the next marathon and have the next move 2:32:44higher. And that's exactly what happened 2:32:45next, right? We moved up. The market ran 2:32:48a marathon. The the market put the next 2:32:50leg up. It can't just continue higher 2:32:53forever. It needs to correct. It needs 2:32:55to rest. And that resting, that 2:32:58correction can either happen through a 2:33:00retracement or a consolidation. In this 2:33:03case, it happened through a 2:33:04consolidation into that rising 20 MA.2:33:07And then we could trade the next leg up.2:33:10So hopefully that makes sense. When 2:33:11we're trading within an uptrend, we're 2:33:12essentially trading this idea of price 2:33:15correction. This idea that once prices 2:33:18have finished correcting within that 2:33:20trend, we buy and we take advantage of 2:33:23the next move up if it's in an uptrend 2:33:25or the next move lower if it's in a 2:33:27downtrend. Okay, so I have my Think or 2:33:29Swim platform up. I have the daily chart 2:33:32right here. I have the two-minute chart.2:33:34I have the five minute chart. And then I 2:33:36have the 15-inut chart. And a lot of you 2:33:38guys are probably wondering, okay, cool.2:33:40I get all of that seems simple enough,2:33:42but number one, how do you use it in 2:33:45practice? And number two, on which time 2:33:48frames do you use it on? And you need to 2:33:50understand that I use multiple time 2:33:53frames. This is called multiple time 2:33:56frame analysis. And we're looking for 2:33:59multiple time frame alignment. I'm not 2:34:02just using one time frame. Throughout 2:34:04the trading day, I am always looking at 2:34:07the daily chart. And then in the 2:34:09morning, I'm focusing on the one and the 2:34:11two-minute chart. And then as the day 2:34:12progresses, I focus on the five-minute 2:34:14chart and the 15-minute chart. All while 2:34:17looking at the daily and the hourly. I 2:34:20am constantly looking and analyzing my 2:34:23trades off multiple time frames because 2:34:26it gives me multiple perspectives of 2:34:29what's going on in that stock and that 2:34:31gives me a better idea on whether that 2:34:34trade is going to make me money or not.2:34:35It just deepens my analysis. I have a 2:34:37better perspective of what's going on.2:34:39All right, so a lot of the trades that 2:34:41I'm about to talk about, I'm going to go 2:34:42through this relatively quick. I 2:34:44personally made money on this week or I 2:34:46watched it this week or it was on our 2:34:49favorites list in the morning this week.2:34:50So these aren't like cherrypicked 2:34:53examples from months ago. These were 2:34:55literally trades from either yesterday 2:34:57or Thursday. And this is how I used the 2:34:5920 MA. So let's look first at the DCGO.2:35:02Why did I focus on the DCGO yesterday?2:35:05Well, number one, it was a really 2:35:06interesting gap down on Thursday. It 2:35:09closed at around 2:30 right here. Zoom 2:35:12in. And then yesterday it opened at 190.2:35:15The reason I thought it was interesting 2:35:17on the daily chart is because it gapped 2:35:18down underneath support, underneath the 2:35:22all-time lows, directly under support,2:35:24and it gapped underneath this move 2:35:26higher. I'll probably make another video 2:35:28going more into gaps and how I trade 2:35:31gaps on the daily chart, but this is why 2:35:32I was focusing on it. And right off the 2:35:35bat, if you just look at the two-minute 2:35:38chart in the morning, I mean, look at 2:35:40this. We dropped. I'm going to kind of 2:35:41zoom in here. Look at this. Just 2:35:44beautiful setup. We dropped, we kind of 2:35:47retraced, moved in, moved a little bit 2:35:51back down, and look at this 2:35:52consolidation.2:35:54Beautiful base breakdown directly into 2:35:58the declining 20 period moving average.2:36:00I went short right here and I put my 2:36:03stop loss uh right above the base and 2:36:05caught this move lower. Beautiful,2:36:08beautiful setup. Now, once again, look 2:36:11at, for example, the five-minute chart,2:36:13right? Even later into the day, and this 2:36:15was closer to like 12:30 to the end of 2:36:18the day, look at how well prices are 2:36:21respecting the 20 period moving average,2:36:23right? You can see there it's just 2:36:24trading off of it. Look at the 15-minute 2:36:27chart right here. Um, we moved down, we 2:36:30retraced, dropped it a bit, and we just 2:36:33based based based based based right into 2:36:36the declining 20 MA. And then we got the 2:36:38breakdown. And this trade right here, I 2:36:40think this ended up making me like 600 2:36:42bucks. I couldn't get that much size uh 2:36:44because [snorts] I couldn't get filled,2:36:45but short under the base stop loss above 2:36:47it. Like literally on this trade, two 2:36:51different really interesting setups that 2:36:54worked that completely just consolidated 2:36:56into that declining 20 MA. Beautiful on 2:36:59the DCGO. Let's look at another example.2:37:01Envax. This thing made me like $2,500 at 2:37:04the end of the day yesterday, right?2:37:06This wasn't an interesting gap. It just 2:37:08started to move down. But what I really 2:37:10want to show you is this. Check this 2:37:12out. So, this thing was consistently 2:37:14downtrending all day. You could see like 2:37:16on the five, you could see how well 2:37:18prices are respecting the 20 MA. It's 2:37:21not completely declining, but it is more 2:37:23or less like, but you could see how well 2:37:25prices are respecting it. Now, right 2:37:27here, it started to break down 20 MA 2:37:30over price. This is the 5m minute. Even 2:37:32on the 15, if you look at the higher 2:37:33time frames, when we got closer to here,2:37:36right, it got closer to the 20 MA and it 2:37:39was getting ready to break down. Then I 2:37:41went to the smaller time frame. This is 2:37:43how I use multiple time frames. Look at 2:37:45this 2-minute base right here. I mean,2:37:47beautiful, unreal. Like, look at this.2:37:49It dropped based right into that 2:37:52declining 20 MA on the two and we got 2:37:54this breakdown. I got like 14,000 shares 2:37:57right here and I caught this move lower.2:37:58Ended up making me like 2500 bucks.2:38:01really really beautiful trade. But you 2:38:02could see how I'm combining multiple 2:38:04time frames. Um downtrend on the five 2:38:07respecting the 20 MA right here. It's 2:38:09way too extended from the 20 MA on the 2:38:1115 and needed to consolidate and correct 2:38:14before it did this breakdown. Right.2:38:17Really, really nice. And then on the 2:38:182-minut, we got that 20 MA breakdown.2:38:21Beautiful, beautiful, beautiful stuff.2:38:22Next, [snorts] we got the PLX. Another 2:38:25really, really interesting setup here.2:38:27All right, so let's kind of analyze it.2:38:29What do we got? Nice gap down. Look at 2:38:32this. It closed at 289 the previous day.2:38:35Next day opened at 240. Look at this 2:38:38massive move lower. Uh and the gap was 2:38:41the catalyst for that move. And look at 2:38:45the 15-minute chart. We dropped retraced 2:38:49based based based directly into the 20 2:38:52MA. It didn't quite touch it, but it was 2:38:53at or near, remember I said near near 2:38:56the 20 MA. Then we got the breakdown and 2:38:58then honestly just time ran out and it 2:39:00didn't make that next move lower. You 2:39:02look at the five, look at this. We 2:39:03dropped retraced into the five minute 20 2:39:06MA. Then we got another drop, but then 2:39:08the day ended. All right, even on the 2:39:10two-minute chart, you could see like 2:39:11it's how well right here it's respecting 2:39:13the 20 MA. This is why I use it. It's 2:39:15like multiple time frames are telling me 2:39:17the same exact thing. That's why I get 2:39:19so confident using it. Oh, the IOA. Uh 2:39:23the main thing I want to show you is 2:39:24actually the one minute chart. This was 2:39:26right off the morning. Check this out 2:39:27right here. Check this out. We dropped.2:39:31This was actually one of my top watches.2:39:33And I tried to scalp this three times 2:39:35yesterday. First three of them lost 2:39:38money. I was down 700 bucks and then 2:39:40right here it retraced right into that 2:39:43declining 20 MA. And right here it 2:39:45literally touched it. I went short at 2:39:4794. I remember 94. I went short and I 2:39:50caught this whole move lower. made all 2:39:52of my money back plus another $1,200 on 2:39:55the IOA. I think that was my NPNL on it.2:39:58Let me check.2:40:00Uh let's see what was my NPNL on the 2:40:02IOA.2:40:05Yeah, 1,200 bucks literally. All right,2:40:07let's move on. So, that was really,2:40:09really nice. Let's look at Oh, this is 2:40:10another This isn't even that high 2:40:12quality of a trade. But number one, look 2:40:14at the five. Began um the uptrend rising 2:40:1820 MA, retraced right into it, moved 2:40:21higher. Even look at the 15. We moved 2:40:24up, retraced right into the 20 MA,2:40:26bounced right into the 20 MA, bounced,2:40:29and we continued higher. Beautiful,2:40:30beautiful setup. And hopefully this just 2:40:32gives you an idea of how you're using 2:40:33it. Look at this. Open. Open was my 2:40:35biggest trade yesterday. Um, take a look 2:40:38at the two-minute chart and the 2:40:40five-minute chart. By the way, this is a 2:40:42beautiful gap down as well under 2:40:43support. Look at this. Dropped based 2:40:47right into the 20 MA drop. Based right 2:40:49into the 20 MA on the downtrend. Amazing 2:40:52move. This made me over 4,000. Um, and 2:40:54they opened right here on the 2-minut.2:40:55Same thing. We we combined multiple time 2:40:58frames. Same thing. We based right into 2:40:59the declining 20A. It's the same things.2:41:01You guys are seeing how freaking useful 2:41:03it is. Even the Kodak yesterday was 2:41:06which was really good. Look at this. We 2:41:08moved down, retraced, moved down, based 2:41:10at the lows right into the declining 20 2:41:12MA and the 15 and then we got the follow 2:41:15through and the breakdown lower. Had a 2:41:16really interesting daily gap as well. It 2:41:19gapped under two green bars. So, it 2:41:21trapped all of the buyers from the last 2:41:22two days. Same thing with the five. You 2:41:25could see how it's declining. The GMAD 2:41:28was one of my best trades in the morning 2:41:30as a matter of fact. And if we look at 2:41:32this, I went short right here. And then 2:41:36you could see how well it respected that 2:41:38downtrend. But I went short uh let me 2:41:39clean it up. Uh right here when it 2:41:42consolidated into that 20 MA, went short 2:41:44and made money. Very good. Let's move 2:41:47on. CRVS, same thing here. Not even that 2:41:49great of a setup, but look, respecting 2:41:51the 20 MA on this 5minute move higher,2:41:53especially here. Really nice little 2:41:55retracement. And then here as well on 2:41:57the 15. Beautiful. Respected the 20 MA.2:42:00Not a high quality setup, but you guys 2:42:02get the idea. Lyft. Look at this lift.2:42:05Power trend it. This was a big gap up on 2:42:08the daily chart. I think it had earnings 2:42:09gapped up, right? So nice bullish 2:42:12catalyst in the morning. Moved up based 2:42:16on the breakout. And look at this. I 2:42:18mean, every time it hit the 20 MA, moved 2:42:19up. If you just rode out this power 2:42:22trend, it would have made you money 2:42:23literally all day. Um, let's see what 2:42:25else. [snorts] Um, the go- go. Same 2:42:28thing with this. Um, didn't quite hit 2:42:31the 20 MA, but this was a nice breakout.2:42:33Um, and then it respected the 20 MA as 2:42:35it was moving higher. We really want 2:42:37that 20 MA to be trending and not flat,2:42:39right? Let's look at the CRVX. Same 2:42:42thing here. Just I mean, all of these,2:42:44if you just look at every time frame, it 2:42:46really respects the 20 MA. Even this 2:42:48this is uh this actually got bought and 2:42:51then went climactic. Was a nice short. I 2:42:53didn't take it. And then even on the way 2:42:56on the on the way down, look at this.2:42:58During the downtrend, perfectly 2:43:00respected the 20 MA. I mean, every 2:43:02single setup, I'm basically showing you 2:43:04guys this. It's the same exact thing.2:43:06And this is what I do every single day 2:43:09in my trading. Now, I obviously don't 2:43:10just use a 20 MA. I have an I have 2:43:13exceptional mastery of knowing the 2:43:16quality of the setups, what criteria go 2:43:18into a high quality setup. You can learn 2:43:20all this in my free 10 plus hour course.2:43:22Watch it in the description of this 2:43:23video. I also combined using level two.2:43:26I made a YouTube video about that 2:43:28obviously with my knowledge on how to 2:43:30trade gaps on the daily chart which are 2:43:32bullish or bearish catalyst for that 2:43:34stock. Gaps can occur because of all 2:43:36sorts of reasons. I also have a YouTube 2:43:37video about that. Watch it. So, it's not 2:43:40just the 20 MA, but I'm combining the 2:43:43usefulness of the 20 MA with everything 2:43:45else that I know about trading, and it 2:43:47just just creates way more higher 2:43:51probability setups. It is truly unreal.2:43:53And this is why I use it. It's the only 2:43:55indicator I use. Same thing here on the 2:43:57zip based right into the declining MA.2:43:59Attempted to break down. Not much follow 2:44:01through, but you guys get the idea.2:44:02Insane, insane stuff. Even this CTMX,2:44:05look at this 20 MA starting to trend 2:44:07lower. This one's a little sloppy, but 2:44:08same idea, right? Hopefully you guys get 2:44:11the point. These were literally trades 2:44:13from the last few days that I was able 2:44:15to make money on using the 20 MA with my 2:44:18knowledge of setups, with my knowledge 2:44:20of order flow, and just knowing 2:44:21everything that um I'm good at with 2:44:23trading. Combine it all and it creates 2:44:25really high probability setups. This is 2:44:27what allows me to make money, guys. It 2:44:29it's what allows me to get results like 2:44:31this because I keep it simple and you 2:44:34should, too. Hopefully, you found this 2:44:36video incredibly useful. Please leave a 2:44:38like, subscribe to the channel. I'm 2:44:40constantly posting uh really educational 2:44:43and valuable videos that you could 2:44:44actually use to make money with.2:44:46[snorts] Um, subscribe, like, leave a 2:44:48comment. Um, if you found this valuable,2:44:50and if anyone who's watching is looking 2:44:52for a serious hands-on mentor that you 2:44:55could trade live with every single day,2:44:57I do I will be transparent. I do have a 2:45:00mentorship where I help scale and coach 2:45:02traders from zero to making 10 to 2:45:04$50,000 per month. I I had plenty of 2:45:08students that surpassed5 to $20,000 this 2:45:11past week trading alongside of me,2:45:13right? Like I made 11,000 or I guess 2:45:15$10,800 yesterday. I had plenty of 2:45:18students that hit anywhere between 500 2:45:20to$7,000 with me just yesterday. If 2:45:23you're looking for a hands-on serious 2:45:24mentor that will work with you until you 2:45:26find success, there's a uh application 2:45:28below. Um, I'm very selective with who I 2:45:31work with because I only like to work 2:45:33with dedicated, disciplined, and 2:45:34professional traders or traders who want 2:45:36to be professional. So, fill out the 2:45:38application if you're interested, but 2:45:39make sure you also get started with my 2:45:40free 10 plus hour course. And hopefully 2:45:42you find found this very educational.2:45:44I'll see you guys on the next video.2:45:47What is up, guys? Hope you're having a 2:45:49great day. I'm very excited for this 2:45:52section of the course because we are 2:45:54finally going to be going into some of 2:45:57the more exciting parts about trading 2:45:59and specifically we're going to be 2:46:01talking about the 20-day moving average 2:46:03today. And a lot of people out there,2:46:06they trade with different indicators.2:46:08Some people use MACD, RSI, Ballinger 2:46:12bands, um, and other super fancy 2:46:15indicators. And frankly, I don't use any 2:46:18of those. I keep my trading extremely 2:46:21simple, but one of the main, I guess you 2:46:24can call it an indicator, uh, one of the 2:46:25main indicators I do use is the 20-day 2:46:28moving average. And we're going to talk 2:46:30about how to use it and how to really 2:46:33take advantage of it because I 2:46:35personally believe it is the ultimate 2:46:39and most useful tool in trading. Okay,2:46:43so first let me show you guys how to 2:46:45actually put it on your Trading View 2:46:47charts. And let me turn off my camera.2:46:51All right. So, once you have this blank 2:46:54chart, you've selected candles right 2:46:56here on Trading View. You're going to go 2:46:57to indicators and you're going to type 2:47:00in moving average. And you could just 2:47:03select the simplest one. It's going to 2:47:06pop up here. It's going to say MA. Just 2:47:09go to this settings tab, go to inputs,2:47:12and change the length to 20. And let's 2:47:16make I'm going to make mine white. Okay.2:47:19And there you go. The 20-day moving 2:47:22average is now on my charts, which is 2:47:26perfect. Now, let's go into how to 2:47:30actually take advantage of the 20-day 2:47:32moving average and how to use it. So,2:47:35moving average, this is one of the 2:47:37fundamentals of technical analysis. This 2:47:40is, I would say, just as equally 2:47:42important as learning and understanding 2:47:45the candlesticks. It's just as important 2:47:47understanding how to use the 20-day 2:47:49moving average. So, let's talk about 2:47:52what are moving averages. Moving 2:47:54averages, they are lines that represent 2:47:57price action in a particular time frame.2:48:01Okay? So, if we're talking about, let's 2:48:03say, the 20-day moving average, that 2:48:05line shows you the average price within 2:48:10the last 20 days, right? If you have a 2:48:12200 day moving average, which is another 2:48:15one that I use, that shows you the 2:48:18average price of that stock or crypto in 2:48:21the last 200 days. So, it's calculated 2:48:25by taking the average of a set of prices 2:48:27over a specific number of days in the 2:48:29past. So, like I just said, 20-day 2:48:32moving average, it would be 20 that it 2:48:33would be the average price of the past 2:48:3620 days.2:48:38A lot of people also ask me about 2:48:40exponential moving averages. That's 2:48:43calculated through uh emphasizing more 2:48:45recent price action. So, the equation 2:48:47that you use for an exponential moving 2:48:49average, it puts larger weight onto the 2:48:54most recent price action and it's much 2:48:57more responsive to new information 2:48:59that's coming out with that starker 2:49:01crypto. Okay? It's it just weighs more 2:49:03recent price action, heavier in the 2:49:06equation. And it doesn't really matter 2:49:08which one you use. You could use either 2:49:11or, but just make sure you stay 2:49:13consistent with it. If you have the 2:49:14simple day moving average, right, make 2:49:18sure you keep that um across all of your 2:49:20charts. And if you use exponential, make 2:49:23sure you use the exponential on all of 2:49:24your charts.2:49:26So, the moving averages, especially the 2:49:2920-day moving average, it's the ultimate 2:49:32stock or crypto directional guide. It 2:49:36shows where a stock or a crypto is 2:49:38trending and how much momentum it has.2:49:41So, it's a directional guide, right? And 2:49:45uh specifically, I know a lot of people 2:49:48they use the 10 MA, but I personally I 2:49:51only use the 20-day moving average and 2:49:52the 200 day moving average. We're going 2:49:54to be talking about the 20 during this 2:49:56class. So, let's talk about some key 2:49:59guidelines. A rising 20-day moving 2:50:02average is indicative positive market 2:50:06strength. Okay, that mean that means 2:50:08it's bullish. There are more buyers than 2:50:12sellers.2:50:13We want to see price and the 2:50:16candlesticks above the rising 20-day 2:50:19moving average. Okay, that shows 2:50:22strength, positive market strength. A 2:50:26declining 20-day moving average trending 2:50:28lower shows negative market weakness.2:50:32And in that case, we want to see price 2:50:35below the 20-day moving average. and 2:50:38that would show bearishness or a you 2:50:40know negative uh you know it would show 2:50:43market weakness. The sharper the slope 2:50:46of the moving average the stronger or 2:50:49weaker the trend is and we're going to 2:50:51look at examples of that.2:50:53During a bullish uptrend, right? We know 2:50:56what an uptrend is. Now, during a 2:50:57bullish uptrend, stocks tend to retrace 2:51:00or pull back to the rising 20-day moving 2:51:03average. That's why we want the 20-day 2:51:05moving average above price. Because 2:51:08during bullish uptrends, we see price 2:51:11actually pull back or retrace to that 2:51:14rising 20. During a bearish downtrend,2:51:17stocks, they tend to retrace or rally 2:51:20during uh to the declining 20-day moving 2:51:22average. Right? So during downtrends,2:51:25they retrace to the declining 20-day 2:51:27moving average.2:51:29Um, so whenever you hear the term 2:51:33extended, when price is extended, that 2:51:36means price is far away from the 2:51:38trending 20-day moving average. So if I 2:51:40ever say extension or extended, it means 2:51:43price is far away from the 20-day moving 2:51:46average. There's distance between price 2:51:49and the 20 MA. And in general, guys,2:51:52always trade in the direction of the 2:51:5520-day moving average, especially if 2:51:57you're a beginner. Trade with the trend.2:51:59Don't go against the trend.2:52:02So, this is an example here where we 2:52:04have a rising 20-day moving average and 2:52:08it is under price. You could see that 2:52:10the candlesticks are over price or I'm 2:52:13sorry, the candlesticks are over the 2:52:1520-day moving average. And we can see 2:52:18that during a bullish uptrend, right, we 2:52:20have higher highs,2:52:21higher lows. price tends to retrace or 2:52:26pull back to the rising 20-day moving 2:52:29average and then from there it increases 2:52:31again, pulls back to the 20-day moving 2:52:33average, increases again, pulls back to 2:52:35the 20-day moving average. Okay? And um 2:52:39so my question for you guys is, can you 2:52:42find the different types of candles that 2:52:44we've learned about narrow range bars,2:52:46tails, or igniting bars? take a look at 2:52:48this chart and try to pinpoint 2:52:51some of the different candlesticks we've 2:52:53learned about. Go ahead and pause the 2:52:55video and just try to write them down.2:52:57I'll give you guys a second to do that.2:53:00Okay, so what we have here is we have a 2:53:04clear topping tail right here, right?2:53:06Huge tail. The sellers have taken 2:53:08control. Price then dropped. And then we 2:53:12have right here an igniting bar, right?2:53:16where the uh opening price is near the 2:53:19lows, the closing price is at the highs 2:53:21and it ignites a new move higher. We 2:53:24also have one here, right? Ignites a new 2:53:26move higher. And then right here we have 2:53:29two narrow range bars which you know are 2:53:33kind of our entry bars dur in this 2:53:35uptrend. And we're going to talk about 2:53:37entry bars later. Okay. But if you were 2:53:39able to identify these candlesticks then 2:53:42perfect. You're you're doing great so 2:53:44far.2:53:45Let's look at the uh 20-day moving 2:53:48average when it's declining.2:53:50Remember, when we have a falling or 2:53:52trending uh a falling and trending 2:53:5620-day moving average that's, you know,2:53:58trending lower, we see that price is 2:54:01under the 20-day moving average. And 2:54:03whenever price drops, it usually 2:54:05retraces to the declining 20, drops,2:54:09retraces to the declining 20, drops, and 2:54:12then now we could see that in this case 2:54:13it based into the declining 20. So the 2:54:1720-day moving average for both uptrends 2:54:19and downtrends, they could be kind of 2:54:21used as also support, right? It's kind 2:54:23of acting as support for the stock 2:54:25during an uptrend and it's acting as 2:54:27resistance for a stock or crypto during 2:54:30a downtrend. Hopefully this all makes 2:54:32sense guys.2:54:34Uh this is a sideways trend, right? We 2:54:37have it's kind of fluctuating between 2:54:38highs and lows. Whenever we have a 2:54:40sideways trend, we also usually have a 2:54:4320-day moving average that is flat and 2:54:46moving through price. Meaning there's no 2:54:49noticeable trend that's taking place.2:54:52And usually guys, whenever you have a 2:54:54flat 20-day moving average, it shows 2:54:56that there's a lack of trend and you 2:54:58should avoid that. So don't trade if you 2:55:02see a a flat moving average. It usually 2:55:04suggests that um there's no momentum,2:55:08there's no clear trend, and you know,2:55:11you generally want to stay away from 2:55:13stocks or crypto that are not trending,2:55:15right? The whole point something's 2:55:17trending, it has momentum, meaning we 2:55:19could take advantage of big moves higher 2:55:21[snorts] or we could short, you know,2:55:23big moves lower. Okay, [clears throat]2:55:26let's look at some examples.2:55:28You could see right here, this is the 2:55:3020-day moving average. We are trending 2:55:31higher, right? We are under price. You 2:55:34could see that every time price touches 2:55:37the 20-day moving average, every time it 2:55:38retraces to the 20-day moving average,2:55:41it goes higher. So, if you guys were to 2:55:43buy it, every time price touched the 2:55:4620-day moving average or got close to 2:55:48it, you would have made money. And once 2:55:51we go into the strategy section of the 2:55:54course, we're going to actually use the 2:55:5620-day moving average and create a 2:55:58strategy, right? And the strategy is,2:56:02you know, whenever it comes clo whenever 2:56:03it pulls back to the 20, that's what we 2:56:05buy. It's called a buy setup. We're 2:56:06going to be talking about that later.2:56:08Okay. In this case, we have a declining 2:56:1220-day moving average. This blue line,2:56:14you could see how how it's over price.2:56:16And you could see that, you know, price 2:56:18touches the 20 and drops. Prices the 20 2:56:20uh touches the 20 drops bases into the 2:56:2320-day moving average drops bases into 2:56:26the 20 drops. So you could see that the 2:56:2820-day moving average is acting as 2:56:30resistance here and it's declining. It's 2:56:33trending lower and we would short it 2:56:36every time it touches the 20-day moving 2:56:38average.2:56:40Let's look at another example. You could 2:56:43see how well price is respecting the 2:56:46rising 20-day moving average, right?2:56:49right here. Base, right? Right. As soon 2:56:53as it touches the 20-day moving average,2:56:55it breaks out. Same thing here. As soon 2:56:56as it touches, breaks out. And the main 2:57:00point here is that we could see that 2:57:01it's trending higher and it's under 2:57:03price. Okay.2:57:06Slope and extension of the 20-day moving 2:57:08average is significant. And we have to 2:57:10remember slope, right? That is the uh 2:57:13the measure of steepness of a line,2:57:16right? So, if you guys have ever taken 2:57:18math classes, you've I'm sure you guys 2:57:20have calculated the slope for different 2:57:22math questions before. But we got to 2:57:23remember 20-day moving average is a 2:57:25line, right? When we when we measure the 2:57:27slope of it, we measure how steep it is.2:57:30So, we want to, you know, ideally we 2:57:31have something that's 45°. 45° is ideal 2:57:35because it shows that it's sustainable,2:57:39right? The move is sustainable.2:57:41The uptrend is sustainable. If it's 2:57:44higher than 45 degrees, right? Where if 2:57:46it's kind of like this is more or less 2:57:4845 degrees, but if it's even steeper 2:57:50than this, then it shows that the move,2:57:52the current move is not sustainable. If 2:57:55it's less than 45°, then it's going to 2:57:58be on the more flat side, and you know,2:58:02it's not it's going to lack momentum. We 2:58:04talked about before how we want to avoid 2:58:06trading flat moving averages. flat 2:58:08moving averages specifically for the 20 2:58:11for the 20 MA. Uh when it's flat, it 2:58:14shows lack of momentum. We don't want to 2:58:16trade stuff that doesn't have momentum.2:58:19And the distance or extension between 2:58:21price and the 20-day moving average 2:58:22tells us if it's overbought or oversold.2:58:25So, let's go into it. You could see we 2:58:27have a solid uptrend. The moving average 2:58:30is kind of it's a little bit it's not 2:58:32quite at 45°, so it's a little bit flat,2:58:34but still price is respecting it. And 2:58:36you could see how it's getting steeper 2:58:37and steeper and steeper and eventually 2:58:40we have a large distance between the 2:58:43candlesticks and the moving average 2:58:45right here. This is uh extension, right?2:58:49This is distance between price and the 2:58:5120-day moving average. And you could see 2:58:52that 2:58:54um the moving average was getting 2:58:56steeper and steeper and steeper and 2:58:58eventually this move was no longer 2:59:00sustainable and we ended up I remember 2:59:03dropping after this. You could see how 2:59:06well price is respecting the rising 2:59:0820-day moving average. Uh same thing 2:59:11here. I believe this is on Bitcoin. We 2:59:13broke out here. 20-day moving average 2:59:16trending higher. It's under price.2:59:18Touched it here. Popped. You could see 2:59:20every time it retraces to the 20, it 2:59:22continues the uptrend. And right here is 2:59:25when we have extension. So, this is 2:59:27where you would want to look for a short 2:59:28position, right? We have extension from 2:59:31the 20-day moving average. And you can 2:59:33see the steeper it got, the less 2:59:35sustainable the move was. And we ended 2:59:36up dropping and base and, you know,2:59:38starting to go sideways here. Okay,2:59:41let's look at another example. Same 2:59:43thing here. We're uptrending.2:59:45The 20-day moving average is under 2:59:47price, trending higher. Every time price 2:59:50touches it, it rallies. You can see how 2:59:52well it's respecting it. Here it got a 2:59:55little steeper. You could see right here 2:59:57it starts to get steeper. Then we have 2:59:59extension, right? We have distance 3:00:01between price and the 20. Here we don't 3:00:04really have any distance. Every time we 3:00:06have distance, it pulls back. But here 3:00:08we have, you know, pretty significant 3:00:09distance and extension. And then we 3:00:11ended up dropping from there. Okay. So,3:00:14we would look for a short in this 3:00:15position.3:00:18Another example. You could see how well 3:00:20it's respecting the 20. And then you can 3:00:22see the 20 is getting steeper, steeper,3:00:24and steeper. And from right here, this 3:00:26is no longer sustainable. This is where 3:00:28we're going to be looking for a short,3:00:29especially with the extension that we 3:00:31have. Okay.3:00:34So, another uh very useful way to use 3:00:37the 20-day moving average is for 3:00:38spotting price transitions.3:00:41When stocks or cryptos are ready to 3:00:43transition into an uptrend or a 3:00:47downtrend, the moving average will begin 3:00:49to curl and hug under price for a 3:00:52transition higher or curl and hug over 3:00:55price for a transition lower. This is 3:00:58really effective for the larger time 3:01:00frames and for longer term trades or 3:01:02swing trades. And you know, usually the 3:01:05time frames you're going to be looking 3:01:07at is the hourly, daily, weekly, or 3:01:09monthly. Let's look at some examples.3:01:11As you could see here, this stock, I 3:01:14believe this is actually AMC. This stock 3:01:16is sideways, right? We don't have a 3:01:18clear trend, right? It's not really 3:01:20going anywhere during this time period.3:01:22You could see the moving averages flat 3:01:25and moving through the candles through 3:01:28price until right here. You could see 3:01:31that we have a rally and the 3:01:32candlesticks were halted by the curling 3:01:3520-day moving average. They stopped here 3:01:37and that's when we had the breakout. the 3:01:40price transition. As soon as we started 3:01:42curling under price and pointing higher,3:01:47same thing here when the 20-day moving 3:01:49average is trending higher, you could 3:01:51see price is respecting it. But as soon 3:01:54as the moving average becomes flat and 3:01:56moves um you know moves into price 3:02:00through price, we could see it doesn't 3:02:02respect it until right here. We see 3:02:04price is starting to respect it. We're 3:02:06seeing it curl higher and that's when we 3:02:08get the breakout and we go higher. So,3:02:10you can see that right before these big 3:02:13breakouts, the 20 MA is curling under it 3:02:17and starting to point higher.3:02:19Let's look at PRTA. This is a really 3:02:21good example where um PRTA, we could see 3:02:25that the 20-day moving average is 3:02:27starting to curl under price, right?3:02:29Starting to curl under and point higher.3:02:32And we could see that this is clearly a 3:02:34price transition. And this is the 3:02:37monthly chart. So each one of these 3:02:39candlesticks represents a month. And 3:02:40that's where we had the big breakout as 3:02:42soon as it started curling under price 3:02:44like that. But if we go to the daily 3:02:47chart of PRTA, so every one of these 3:02:50candlesticks represents a month. If we 3:02:52go into the daily chart, right, then we 3:02:57see something a lot more interesting 3:02:58where uh when the moving average is 3:03:01going through price, it's flat. We don't 3:03:03have any moves. But as soon as it starts 3:03:05to curl higher and under price, that's 3:03:08when we get the transition higher. Okay?3:03:11Same thing here. Soon as it moves under 3:03:14price and curls higher, that's when we 3:03:16make a move up.3:03:18Same thing here. It's flat, trendless,3:03:20nothing's going on right here. It starts 3:03:23to respect the 20 MA, starts to curl 3:03:26higher, and that's when we have the 3:03:28breakout, right? And you can see as soon 3:03:32as it started trending, that's when we 3:03:33started continuing higher.3:03:35And uh okay, this is the last slide. So 3:03:38trade with the trend, guys. Your odds of 3:03:40success are greatly increased when 3:03:42you're playing in the same direction of 3:03:45the 20-day moving average.3:03:47The correct entry is when price is at or 3:03:50near the 20-day moving average, not when 3:03:53it's far away. Let me show you an 3:03:55example of that. Right.3:03:59So, we want to be buying it during this 3:04:02uptrend when the moving average is below 3:04:04price. We want to be buying it when 3:04:06price is at the 20 MA because when it 3:04:09hits the 20 MA, it goes up. When it hits 3:04:11the 20 MA, it goes up. When it hits the 3:04:1420 MA, it goes up. So, we want to be 3:04:15buying it when it's at or near the 3:04:1720-day moving average. Just like we want 3:04:20to be shorting it when it's at, right?3:04:24Rallies into the 20, we short. Rallies 3:04:26into the 20, we short. Goes into the 3:04:2820-day moving average, short. Goes into 3:04:31the 20, short. Okay? And as soon as we 3:04:34see some price extension, that's when we 3:04:36begin to rally because we're extended.3:04:39Okay? Hopefully that makes sense, guys.3:04:42Uh, let's go. And the 20-day moving 3:04:45average becomes extremely useful when 3:04:47you pair it with tradable patterns and 3:04:49strategies. So, we're going to be 3:04:51combining this 20-day moving average 3:04:53with a real trading strategy later in 3:04:56the course. So, you don't want to just 3:04:59enter because you have a rising um or 3:05:02declining 20-day moving average. You 3:05:04want to have a pattern. And there's 3:05:05specific things we look for in that 3:05:08pattern when you combine it with the 20.3:05:10We're going to we're going to talk about 3:05:11that a little bit later.3:05:13Okay. So, main points here is that it's 3:05:17an excellent directional guide and it 3:05:19shows you what's going on with the 3:05:21trend. If it's uh if we have a uptrend,3:05:26we want the 20-day moving average under 3:05:28price and trending higher. If we have a 3:05:30downtrend, we want the move the 20-day 3:05:31moving average over price, trending 3:05:34lower. If it's sideways, it's not really 3:05:36that effective. Okay, that's kind of the 3:05:39summary here. Make sure you kind of 3:05:40watch this class a bunch of times. And 3:05:42my biggest recommendation, guys, is go 3:05:45and put the moving average, the 20-day 3:05:48moving average, right, on some of your 3:05:49charts and just start watching, you 3:05:53know, how price actually respects it 3:05:56during uptrends or downtrends, okay? And 3:05:59you'll just watch how price really 3:06:02trades off of it, and that's what makes 3:06:04it such a powerful and useful tool. So,3:06:06make sure you do that. And this was an 3:06:08excellent class, guys. U looking forward 3:06:11to seeing you guys in the next one.3:06:12Thanks.3:06:13>> Let's hop right into the video. So step 3:06:15number one, you're going to go to 3:06:16indicators on your trading platform.3:06:18Right now I am on tradingview.com.3:06:21Now for my own personal day trading, I 3:06:23use Think or Swim. Now you're going to 3:06:26see tons of different complicated 3:06:29looking indicators. You're going to see 3:06:31crazy names like the Shandai Croll stop.3:06:34You're going to see Elder Force index.3:06:36You're going to see like Williams 3:06:38alligator and you're going to be 3:06:40overwhelmed. You're going to be 3:06:41confused. Which one do you actually use 3:06:44and you're going to want to actually 3:06:46ignore all of these fancy sounding 3:06:50indicators and your goal is to keep 3:06:52things simple. So, what you're going to 3:06:54do is look up moving average. Okay?3:06:58You're going to look up moving average 3:07:00and you're going to see all these 3:07:01different types of moving averages. Now,3:07:03what you want to do is doubleclick on 3:07:06simple. You're going to click it once,3:07:07and then you're going to click it one 3:07:09more time. Once you do that, you're 3:07:11going to see these two moving averages 3:07:13pop up in the top left, and you want to 3:07:16hover over one of them, and you want to 3:07:18go to settings. And once you do that,3:07:21all you need to change is you want to 3:07:23change the length of nine, change it to 3:07:2620, and then press okay. Now, go to the 3:07:29other one and do the same exact thing.3:07:31Hover over it, go to settings, and from 3:07:34here, change the length to 9, and this 3:07:37time you're going to change it to 200.3:07:40And voila. These are the only two 3:07:44indicators I have ever used in my 3:07:46trading. Now, I also use volume. I don't 3:07:48really consider that an indicator, and 3:07:50I'm going to make a separate video on 3:07:51that. So, make sure you subscribe to the 3:07:53channel to watch that video as well.3:07:55But, I've only ever used two simple 3:08:00moving averages. I think the simplest 3:08:02things in life are oftentimes the most 3:08:05brilliant. I have never used MACD. I've 3:08:07never used stochcastics or VWAP or RSI 3:08:11or Elliot wave theory or Fibonacci. I 3:08:13keep it simple. And a lot of you guys 3:08:16are going to watch this video and be 3:08:17like, "Oh my god, two simple moving 3:08:20averages. Like what? Like I thought I 3:08:23thought you would be using all these 3:08:24complex tools." No, I don't use any 3:08:27fancy indicators. I keep it simple. And 3:08:30funny enough, these are two of the most 3:08:33powerful indicators you will ever use in 3:08:36your trading. And I'm about to show you 3:08:38why. Finally, let's talk about the 200 3:08:40period moving average. And this is 3:08:42actually even simpler. So, what we're 3:08:44looking for is for a flat 200 period 3:08:48moving average. The 20 MA, we wanted 3:08:50that to be trending whether it's 3:08:52uptrending or downtrending. And we don't 3:08:55want the 20 MA to be flat. It's the 3:08:57opposite for the 200. We want the 200 3:09:00period simple moving average to be 3:09:02relatively flat. And the 200 MA could 3:09:05act as a ceiling for price whenever 3:09:09prices are trading below it. It could 3:09:11also act as a floor for prices whenever 3:09:14prices are trading above it. So what 3:09:16does that mean? Let's say you have a 3:09:17bunch of price action right here. This 3:09:19200 MA could act as resistance for this 3:09:24price action where a lot of time prices 3:09:26will go to the 200 and bounce from it.3:09:29Go to the 200 and bounce from it. So it 3:09:31could actually be a resistance area um 3:09:35for prices if prices are below the 200.3:09:39Now the same exact thing applies if it's 3:09:42support. If prices are trading above it,3:09:44let's say you have a bunch of price 3:09:45action. This 200 MA can act as support 3:09:49for price where prices will actually 3:09:51bounce from it and it's literally like a 3:09:54floor for price action. Now, this setup 3:09:58is quite rare. However, I do want to 3:10:00mention it. Every now and then, you'll 3:10:02get what's called a squeeze play where 3:10:05you have a flat 200 period moving 3:10:08average and then you have a 20 period 3:10:10moving average that is rising and going 3:10:13through this 200. And what you'll 3:10:16sometimes notice is prices will actually 3:10:19oscillate between the two where it's 3:10:22going to use the 200 as a ceiling, as 3:10:24resistance, and it's going to use this 3:10:2620 MA as support. And they'll continue 3:10:29to oscillate and oscillate and oscillate 3:10:31and squeeze until the point where it 3:10:33can't squeeze anymore, and it's just 3:10:35going to break out. And these setups are 3:10:37quite rare. However, they're extremely 3:10:40powerful. So, you want a flat 200 MA 3:10:44rising 20 MA that's going through the 3:10:46moving average. And you want to see 3:10:48prices oscillate between the two until 3:10:50eventually they can't, you know, there's 3:10:52no more room to oscillate and then they 3:10:54break out. And this honestly works 3:10:56better for like swing trading. So, I'd 3:10:58look at the daily or weekly time frame 3:11:00for this. All righty. Let's look at some 3:11:02fantastic examples on how you could 3:11:04apply the 20 and the 200 MA into your 3:11:07trading. And I'm going to give you my 3:11:09thought process on how I apply it in my 3:11:12own trading. And by the way, these are 3:11:13not like cherrypicked examples. These 3:11:15are all stocks that I was watching or 3:11:19that I traded this past week. Like this 3:11:21uh KDP, this is CUREG. This had an 3:11:24overnight gap down yesterday where it 3:11:26gapped from $35 and the next day it 3:11:29opened at 3250. And notice how we gapped 3:11:34directly below the 200 and how we opened 3:11:37below all of this support. So I was 3:11:40going into yesterday with a bearish 3:11:43bias. And I actually really like gaps 3:11:46that open below the 200. But let's take 3:11:49a look at the fiveinut time frame. This 3:11:51is one of the main time frames that I 3:11:53use. And look at how well prices are 3:11:57respecting the 20 MA on the five,3:12:00especially as soon as the 20 MA starts 3:12:03to actually establish a downtrend. As 3:12:05soon as the 20 MA is trending lower 3:12:08right here, basically notice how well 3:12:11prices are respecting the 20. So right 3:12:13here, this is a potential short 3:12:15opportunity directly under the base.3:12:17Dropped kind of based into the five, not 3:12:19quite dropped again. Look at this.3:12:22Consolidated directly into the 20 MA and 3:12:24the five. Next day we gap down a little 3:12:27bit and continue that downtrend. Now 3:12:29this is the 5m minute. Let's look at the 3:12:31two-minut especially today. And this is 3:12:34going to be shocking but look at this.3:12:36Look at how well prices are respecting 3:12:39the 20 MA on the two-minut. I mean,3:12:42every time it hits the 20 MA here, here,3:12:46right here, right here, right here,3:12:48every time it hits the 20 MA, it ends up 3:12:51dropping. And you could have literally 3:12:53went short every time prices hit the 20.3:12:56And it would have worked for this 3:12:58absolute beauty of a power downtrend.3:13:00And this is why I used the 20 during 3:13:03established downtrends. Notice how the 3:13:0520 MA is trending lower, very, very 3:13:07strongly. If we look at the 15, it's 3:13:09basically the same thing. Um, where the 3:13:1220 MA is trending lower. However,3:13:14there's a little bit of distance between 3:13:16price and the 20 MA. So, the 20 MA isn't 3:13:19being like fully respected on the on the 3:13:2215-minute chart. From there, you go to 3:13:24the smaller time frames to find your 3:13:26entries, but unbelievable 3:13:28daily gap that led to a beautiful 3:13:31downtrend where you could use the 20 MA 3:13:33for your entries to capitalize on this 3:13:35trend. Let's look at the BNS. This is a 3:13:38random stock that popped up today. This 3:13:40is the Bank of Nova Scotia. Um, and 3:13:42stemming back all the way from 2024 when 3:13:45this uptrend kind of reversed, you could 3:13:47see that we entered into a downtrend on 3:13:49this stock. And this is the daily time 3:13:51frame, by the way. Look at how well 3:13:53prices are respecting the 20 MA on this 3:13:56downtrend. The 20 MA is over price,3:13:59trending lower. We drop, retrace into 3:14:02the 20, drop, retrace into the 20. Here 3:14:05we actually gapped down like 8% and it 3:14:08gapped right into the 200 MA on the 3:14:12daily time frame. So this 200 MA acted 3:14:14as a floor for price. It acted as 3:14:17support for price. We gapped right into 3:14:19it. Instantly got bought then retraced 3:14:22into the 20, hit it perfectly, dropped 3:14:25again, hit it perfectly, dropped, and 3:14:27then right here the trend reversed and 3:14:29we went into an uptrend. And you could 3:14:31see for yourself. Look at how well 3:14:33prices are respecting the 20 MA. I mean,3:14:36I don't even need to explain it. It's 3:14:37literally obvious and it's simple.3:14:39That's exactly why I use the 20 and the 3:14:42200 MA. Even here, we had a gap up 3:14:44today. Literally today, we gapped up 2%3:14:47on a really bullish chart, really 3:14:49bullish trend, on a nice gap up. Go to 3:14:52the 15minute time frame to find a 3:14:54potential setup. And even on the 15,3:14:56look at how well prices are respecting 3:14:58the 20. We have a nice rally uh four bar 3:15:01red bar pullback. Nice little buy setup 3:15:04here. We kind of move up a little bit 3:15:06right into the 20 and then we take off 3:15:08and make new highs. And this is why I 3:15:11use the 20 and the 200 on the intraday 3:15:13time frames and even on the larger time 3:15:15frames because they're simple and they 3:15:17allow me to understand what the trend 3:15:19is. When I look at this chart, I know 3:15:20exactly what's going on. established 3:15:22downtrend, then an established uptrend,3:15:24and I know where I could potentially get 3:15:27into the trend using the 20 period 3:15:29moving average. Let's take a look at 3:15:31this RR, which had a really nice 3:15:33breakout the last couple days. But let's 3:15:36go back to 2024. And this is a really 3:15:38good example of a squeeze play where we 3:15:41have a rising 20 period moving average,3:15:44flat 200 period moving average. You 3:15:46could see prices hit the 200, then hit 3:15:48the 20, then hit the 200, kind of 3:15:51oscillated back and forth. It's not a 3:15:53perfect example, but once it broke out,3:15:55it really broke out. And this thing 3:15:57rallied like over 500%. Which is insane.3:16:00So, that's a decent example of a squeeze 3:16:02play, but that's not even what I want to 3:16:04show you in this example. Look at how 3:16:06well the 200 MA is acting as support and 3:16:10as a floor for this stock. Like, we hit 3:16:13the 200 here. Instantly, we bounce. Then 3:16:15we kind of chop around. We retest the 3:16:17200. We bounce here. We actually almost 3:16:21break down through the 200. That's 3:16:24instantly rejected. We move right back 3:16:26up again. We try to break through the 3:16:28200, rejected again. Right here, we try 3:16:30to break through the 200 to the 3:16:32downside, rejected, and then this time 3:16:34it led to a 62% move to the upside. And 3:16:37this is why I like to use the 200 MA.3:16:40Whenever prices are above it, it acts as 3:16:43a floor. It acts as support. And by the 3:16:45way, this is the daily time frame. Let's 3:16:47look at a good example of using the 20 3:16:49MA during the intraday time frame. So 3:16:51this stock had a very minor gap up. This 3:16:53was just a few days ago. It gapped up 3:16:562%. So it opened higher by 2%. It had a 3:16:59really nice green day. I'm seeing the 20 3:17:01MA on the daily time frame is starting 3:17:04to trend higher. It's under price. So I 3:17:07went into this day with a bullish bias.3:17:10And just take a look at this fiveinut 3:17:12time frame. just beautiful uptrend and 3:17:15it's beautifully respecting the 20 MA 3:17:18where we had a nice breakout here. We 3:17:20moved up, retraced to the 20, kind of 3:17:22chopped around, another move up, retrace 3:17:25to the 20, move up, retrace to the 20,3:17:27move up, retrace to the 20. And it's 3:17:30just respecting the 20 MA almost 3:17:33perfectly. And every time it hit the 20,3:17:35that was actually an opportunity to 3:17:37potentially go long. and just a 3:17:40beautiful uptrend with the 20 MA under 3:17:43price trending higher. Let's look at 3:17:45another example where we combine using 3:17:47the 200 MA on the daily time frame and 3:17:50then we use the 20 MA on the intraday 3:17:52time frame. So this MAT gapped from like 3:17:562018 and the next day it opened 6% lower 3:17:59at around 1890. Notice how we gapped 3:18:03directly below the 200. Literally 3:18:05directly below it. We didn't gap into it 3:18:08where it would act as support. We gapped 3:18:10right below it and we also gapped 3:18:12underneath a lot of this support as 3:18:15well. So beautiful gap down and from 3:18:19there we go to the intraday time frames 3:18:22to find a potential setup. So off the 3:18:24five here I mean again you could see how 3:18:26well prices are respecting the 20. The 3:18:29best setup was right here. Stop loss 3:18:33above basically. So this is the five.3:18:35Even if we look at the 2-minut again,3:18:38every time prices hit the two minute, 20 3:18:41MA, we get a move lower. We drop retrace 3:18:44to the 20 MA and the two drop. Then 3:18:46right here, notice, check, check this 3:18:49out. Right here, we attempt to break 3:18:51above the the 20. We attempt to kind of 3:18:54end this downtrend, break over the 20.3:18:56That was rejected. Then we continue to 3:18:58base the 20 acted as resistance and 3:19:00boom, we got another breakdown again 3:19:02right here. attempt to move past the 20 3:19:05breakdown, attempt to kind of go through 3:19:07the 20, breakdown. And you could see how 3:19:09well prices respect the 20 MA during 3:19:13this established downtrend on multiple 3:19:15time frames. Even if we look at the 15,3:19:18right? It's usually better to look at 3:19:19the smaller time frames for your entries 3:19:21into these day trades. But even on the 3:19:2215, 20 MA is over price, trending lower,3:19:25confirming that bearish downtrend. This 3:19:28is Coinbase from a few weeks ago. We 3:19:31have a rising 20 MA under price. We have 3:19:34a consolidation into that rising 20 MA.3:19:37200 MA is directly above. We gap above 3:19:41the 200 around 12% to the upside. Gap 3:19:44above the 200 triggering this base 3:19:47breakout on the daily time frame. 20 MA 3:19:50is under price. You go to the 15minut 3:19:52time frame for a potential setup and 3:19:54beautiful uptrend. Let's look at the 3:19:56five. And you could see, look at that 3:19:59five. how well prices are respecting the 3:20:0120 MA. We have that initial move up. We 3:20:04consolidate directly into the 20 3:20:06breakout over the base. Nice move up,3:20:09retracement into the 20. Look at how 3:20:11well it's respecting the 20 and then we 3:20:13have another leg higher. We retrace 3:20:15another move up. So, you could see how 3:20:17well prices respect the 20 MA. And this 3:20:20is exactly why I use it on multiple time 3:20:23frames. Let's finish off this video by 3:20:25looking at the S&P 500, the SPY. So this 3:20:29bottomed out in April and since then we 3:20:31have been up only and during this 3:20:34uptrend what do you know look at how 3:20:36well prices are respecting the 20 MA 3:20:39even on the spy. So we have a nice move 3:20:42up retrace into the 20 nice move up here 3:20:45we consolidate into it. Then we have 3:20:47another breakout from the 20. We try to 3:20:49retest it on this tail. Instantly we 3:20:52move up here. We actually broke under 3:20:54the 20. This was a few weeks ago. We 3:20:56broke under the 20, instantly rejected.3:20:59Have a another nice move higher. Here we 3:21:01have a retracement. Nice buy setup into 3:21:03the 20. Boom. And now it looks like the 3:21:06spy wants to continue higher. We can 3:21:08even look at like crypto. Let's take 3:21:10Ethereum. Look at how well Ethereum is 3:21:13respecting the 20 MA over the last few 3:21:15months. We have a rising 20 MA under 3:21:17price here. It kind of broke below,3:21:20instantly rejected, and we had a nice 3:21:21move higher. We retraced right into the 3:21:2420. literally hit the 20 instantly. We 3:21:27popped another red bar, hit the 20,3:21:29boom, the next day we have a nice green 3:21:31bar. This was on uh the Jackson Hole um 3:21:34drone Powell speech. Then we retrace,3:21:37hit the 20, boom. Um today, literally 3:21:40another green bar. Um even if you look 3:21:42back just a few months ago, I bought a 3:21:45 ton of Ethereum right here because 3:21:47I saw that the 20 MA started to 3:21:49transition higher. It's curling up. The 3:21:5220 MA is under price trending higher. We 3:21:54have a nice move up based into the 20.3:21:57This was a beautiful breakout and what 3:22:00do you know? It hit target at the 200.3:22:02So the 200 acted as a ceiling for 3:22:05Ethereum where it hit the 200 retraced.3:22:07Hit the 200 retraced. Hit the 200 3:22:10retraced. Hit the 200 retraced. Here we 3:22:13broke through. We kind of had a fake out 3:22:14and then a fake out to the downside. 20 3:22:17MA is flat, so it's not that useful. And 3:22:19then as soon as the 20 MA begins rising 3:22:21and trending under price, that's when 3:22:23Ethereum starts respecting it and it 3:22:26resumes or resumed the uptrend. And I'm 3:22:28still expecting much higher prices for 3:22:31Ethereum. And that is exactly why I use 3:22:33the 20 and the 200 MA for every single 3:22:36one of my charts that I look at. I like 3:22:38to keep it simple, guys. All I use are 3:22:40two moving averages, the 20 and the 200.3:22:43And by keeping it simple, that's what 3:22:45allows me to make money. So hopefully 3:22:47this could be transformative for your 3:22:49trading and hopefully this will help you 3:22:51keep it simple. So make sure you 3:22:53subscribe to the channel if you enjoyed 3:22:55this video. Leave a comment if you found 3:22:57it valuable. Leave a like. That's going 3:22:59to help the YouTube algorithm. And 3:23:01hopefully you learned a lot and I will 3:23:02see you on the next video. Thank you 3:23:04very much. What is going on guys? Glad 3:23:08that you've made it to this section of 3:23:10the course. And today we're going to be 3:23:12talking about multiple time frame 3:23:15analysis.3:23:17And I've mentioned this in previous 3:23:19classes, the importance of using several 3:23:21different time frames while you're 3:23:24trading. And that is an extremely 3:23:27important concept. In fact, I will say 3:23:31that it is probably one of the biggest 3:23:35beginner mistakes that I see is that 3:23:38traders are not using multiple time 3:23:40frames when they're analyzing a specific 3:23:43stock or crypto. they're only using one 3:23:45time frame and then they're making bad 3:23:48decisions from it because they're not 3:23:50considering the overall context, overall 3:23:53landscape of what's going on with that 3:23:54stock. Right? So, let me turn off my 3:23:57camera here and we're going to get into 3:24:00multiple time frame analysis. So, key 3:24:02concept here, guys, like I said, like I 3:24:05just mentioned, not checking multiple 3:24:07time frames when you're trading. One of 3:24:09the largest largest beginner mistakes 3:24:11you can do. You are literally trading 3:24:14blindly if you're only considering one 3:24:18time frame prior to taking a trade. You 3:24:20really are. And the probabilities of a 3:24:23trade working in your favor 3:24:26significantly increases when there is 3:24:29multiple time frame alignment. When 3:24:31several time frames are all saying the 3:24:34same thing about a stock or a crypto,3:24:37that's when you could look to take 3:24:38advantage of a potential move either 3:24:41higher or lower. And you don't want to 3:24:44take trades where there's a conflict 3:24:48between the time frames, right? So,3:24:49let's kind of talk about that. So, what 3:24:52is multiple time frame alignment? It 3:24:54means it's when you know several time 3:24:56frames are aligned. They're all saying 3:24:58the same thing. They're either all 3:25:00saying that it's bullish or they're all 3:25:02saying that it's bearish or they're all 3:25:04saying that, oh, there's no momentum.3:25:06It's actually a sideways trend. Okay, so 3:25:08let's go over one example here. The 3:25:10daily chart is bullish. It's uptrending.3:25:14And the 20-day moving average is 3:25:17trending higher and is under price. The 3:25:20hourly chart is also bullish with a 3:25:23rising 20 MA under price. Right, the 3:25:2615-minute and the five-minute are also 3:25:29both very bullish with rising 20-day 3:25:32moving averages. And the 15-minute chart 3:25:35also has a breakout pattern, which we 3:25:38haven't learned about that yet, but uh 3:25:41we will learn about that. So, it also 3:25:42has a beautiful breakout pattern, right?3:25:45So, let's compare this example to 3:25:48example number two where the same thing.3:25:51The daily chart is bullish. It's up 3:25:53trending. the 20 MA is rising and uh 3:25:55trending under price. However, the 3:25:59hourly chart has a declining 20-day 3:26:02moving average that's curling over 3:26:04price, right? And remember, when it's 3:26:05declining and when it's curling over 3:26:08price, that suggests, you know,3:26:10bearishness. It suggests that prices are 3:26:12going to go lower. The 15-minute chart 3:26:15is sideways and has a flat 20-day moving 3:26:19average. And remember, when it's flat,3:26:21that means it's trendless. there's lack 3:26:23of momentum. And the five-minute chart,3:26:26however, looks bullish with a trending 3:26:2820-day moving average that's 3:26:30underpriced. Which trade has a higher 3:26:33probability of succeeding, right? The 3:26:36example one where every single time 3:26:39frame, you know, doesn't matter if it's 3:26:42the larger time frames such as, you 3:26:44know, going at the uh daily or hourly 3:26:46chart or the lower time frames, that's 3:26:48the 15 minute or five minute chart. All 3:26:50of them are screaming bullish. All of 3:26:52them are the, you know, are giving you 3:26:55the same information that the stock or 3:26:58crypto looks higher. Or are you going to 3:27:00choose example two where you have one 3:27:03time frame showing higher, another time 3:27:05frame showing lower, one time frame 3:27:08showing that there there's no momentum 3:27:10at all, and then this time frame saying 3:27:12that it's higher. Right? You could see 3:27:14that there's we don't have multiple time 3:27:16frame alignment in example two. And we 3:27:20obviously we would prefer seeing example 3:27:22one. So you can quickly see the 3:27:24importance of having multiple time 3:27:27frames all giving you the same 3:27:30information. And here we have a great 3:27:33example of uh of conflict between the 3:27:36time frames, right? We have different 3:27:38time frames telling us different 3:27:41different uh types of information. Okay?3:27:44So obviously example one has the higher 3:27:46probability of succeeding. So let's talk 3:27:49about what time frames you should 3:27:51actually be looking at. And we're going 3:27:53to be talking about crypto uh day 3:27:54trading first. So something to note,3:27:58crypto markets are 24hour markets,3:28:00meaning they don't close. They operate 3:28:03on a 24-hour schedule. There's always 3:28:05buying and selling in the crypto 3:28:07markets. So step one, always check the 3:28:12higher time frames, meaning the daily 3:28:15and the weekly charts to see the overall 3:28:18context on how the how the crypto is 3:28:21trading. You're looking at the long 3:28:23larger term or longer term trend, right?3:28:27Step two, you're going to move on to the 3:28:29hourly chart, see what's going on there.3:28:31And then step three, you're going to go 3:28:34to the five and 15 minute charts. And if 3:28:37you're scalping, which is taking really,3:28:39really short trades, really quick 3:28:41trades, then you're going to be looking 3:28:42at the one or two minute charts. So the 3:28:44point is here, guys, we're starting at 3:28:46the larger time frames and we're moving 3:28:49to the smaller time frames, right? We're 3:28:50seeing what are the larger time frames 3:28:52telling me, and then we're going to go 3:28:54to the smaller time frames and see if 3:28:57those time frames are telling you the 3:28:58same thing and if we could potentially 3:29:00find a str a strategy or an entry.3:29:04Okay. So, hopefully hopefully that makes 3:29:06sense. For stock day trading, um it's a 3:29:11little bit different because the stock 3:29:12market uh in the US equities market is 3:29:15open from 9:30 a.m. to 400 p.m. Eastern,3:29:19and that's Eastern time. Okay? So, as a 3:29:22result of that, there are going to be 3:29:24price gaps that occur. And we're going 3:29:27to be talking about price gaps a little 3:29:29bit later, but just know that in the US 3:29:32equities market,3:29:35you know, it opens and closes at a 3:29:37specific time. Okay. So, step one, what 3:29:40you're going to be doing is always look 3:29:43at the daily chart first to see if the 3:29:46stock is gapping and for overall context 3:29:49on how the stock is moving. So, once 3:29:51again, we're starting at the larger time 3:29:53frames.3:29:55Then you're going to move to the hourly 3:29:57chart for further context to see if you 3:30:00can get any information from that to see 3:30:01if the hourly chart u aligns with the 3:30:05daily chart that we did in step one. And 3:30:09[snorts]3:30:10while you're, you know, keeping an eye 3:30:12on the larger uh on the higher time 3:30:14frames, and this is of course Eastern 3:30:16time zone, from 9:30 to 10:00 a.m. you 3:30:18want to be looking at the 1 to 2 minute 3:30:20charts. From 10:00 a.m. to 11:30 a.m.,3:30:24you're going to want to be looking at 3:30:25the 2 minute and the five minute charts.3:30:27[snorts] And from 11:30 a.m. to 4 pm,3:30:30you want to be looking at the 5 minute 3:30:32and 15 minute charts. Okay? So, just 3:30:34write this down and keep these time 3:30:36frames in mind. But even if you're 3:30:39trading at, let's say, 2:00 p.m. and 3:30:41you're looking at the five and 15 minute 3:30:42charts, you want to always have a look 3:30:46at the daily chart to see if it's 3:30:48gapping and what's going on with the 3:30:51daily chart, right? What overall trend 3:30:53is is seen and you know, how is it 3:30:57trading?3:30:58For crypto and stock swing trading, you 3:31:02number one, you you're going to want to 3:31:04look at the daily chart and the weekly 3:31:07chart, okay? And identify potential 3:31:10setups. So, go to the daily and the 3:31:12weekly chart, see what's going on, see 3:31:14how it's overall trending, try to find 3:31:17specific setups,3:31:19and step two, then look at the hourly to 3:31:22find potential entries. So once you 3:31:24found the strategy or the setup that 3:31:27you're playing on the daily or the 3:31:28weekly chart, then go to the hourly to 3:31:31find some potential entries so you can 3:31:33take advantage. Okay, so main time 3:31:35frames are the hourly, daily, and weekly 3:31:37charts. Okay, so now we're going to 3:31:40practice. Now we're going to analyze 3:31:43some more stocks in crypto for you guys 3:31:45so you guys can get the hang of uh hang 3:31:48of it on how to of how to practice 3:31:50multiple time frame alignment. and we're 3:31:52going to be kind of showing you 3:31:55what it looks like when multiple time 3:31:56frames are aligned and what it looks 3:31:58like when we actually have conflict 3:32:00between the between the different time 3:32:02frames. Okay, so hopefully this all 3:32:04makes sense guys. This is uh this is a 3:32:06very very important topic. Okay, so make 3:32:10sure just please make sure you're always 3:32:12looking at different time frames. Okay,3:32:14and just follow the framework that I 3:32:16set. Always start at the larger time 3:32:19frames and then move to the lower time 3:32:21frames. And when you have the larger 3:32:24time frames saying uh bullish and then 3:32:26you have the smaller time frame saying 3:32:28bullish and the 20-day moving average 3:32:30looks good and the 200 day moving 3:32:32average looks good and you have an 3:32:34actual playable pattern, which we're 3:32:36going to learn about soon, then you 3:32:39could actually take the trade and make 3:32:41some money off of it. But you could see 3:32:43the multiple time frame alignment part 3:32:45of it is key. It's crucial that all of 3:32:47the time frames are telling you the same 3:32:49information. It increases the likelihood 3:32:52of success for that trade. All right,3:32:55guys. We're going to do a practice 3:32:57session next. So, see you then. And 3:32:59we're going to actually uh you know,3:33:01learn how to do this not just in theory,3:33:03but in practice as well. So, thanks,3:33:04guys. In this video, I'm going to 3:33:06completely reshape the way that you look 3:33:09at time frames. And what if I told you 3:33:11that I don't actually use one specific 3:33:14time frame for all of my trades? And to 3:33:18show you how you should perceive using 3:33:20time frames, we're going to use an 3:33:22analogy. Imagine we have a mountain 3:33:25right here. And let's say you are at the 3:33:27bottom of the mountain. This is you 3:33:30chilling. You're at the bottom of the 3:33:32mountain. I have a question for you. Are 3:33:34you truly going to have a perspective of 3:33:38what's going on around you when you're 3:33:40at the bottom of the mountain? Like, are 3:33:42you going to understand what the 3:33:43landscape is around you, where the hills 3:33:45are, where the birds are, where the, you 3:33:48know, creeks are, the lakes, the rivers,3:33:50whatever. Are you going to have a 3:33:52perspective of what's going on around 3:33:53you? Well, not really. You're literally 3:33:55at the bottom of the mountain. Like,3:33:57imagine being at the bottom. You can't 3:33:58really see what's going on around you.3:34:00But as you move up the mountain, right,3:34:04let's say you're right here. Are you 3:34:06going to have a better perspective of 3:34:08what's going on beneath you at this 3:34:10point of the mountain? Well, absolutely.3:34:12You have a much better perspective. You 3:34:14could somewhat see the landscape, the 3:34:17trees, the lakes, etc. You have a better 3:34:20perspective than when you were at the 3:34:22bottom of the mountain. Now, let's say 3:34:24you're at the top of the mountain. Are 3:34:26you going to have a better perspective?3:34:27Well, of course. In fact, you're going 3:34:29to have the ultimate perspective of 3:34:32what's going on beneath you and around 3:34:34you because you're at the top. You see 3:34:36everything that's down below. You know 3:34:38what the landscape is. You know where 3:34:39the rivers are. You see everything 3:34:41because you're at the top of the 3:34:43mountain. You have the ultimate 3:34:44perspective. And this is the way that I 3:34:46would perceive and understand time 3:34:49frames. When you're at the bottom of the 3:34:51mountain, that's like looking at smaller 3:34:53time frames in your trading. And then as 3:34:55you move up and up the mountain, that's 3:34:58like looking at the higher the larger 3:35:02time frames in your trading where the 3:35:04larger time frames they give you 3:35:06perspective on what that stock or what 3:35:09that crypto whatever you're trading 3:35:11whatever it is doing. It gives you the 3:35:12ultimate perspective. It gives you the 3:35:15kind of long-term bias of what's going 3:35:17on. And then as you go down the 3:35:19mountain, you could, you know, your 3:35:21perspective kind of shrinks and shrinks 3:35:23and shrinks. And this is the way that I 3:35:25would think about time frames. And the,3:35:28you know, the point that I'm trying to 3:35:29make here is it's not about using one 3:35:33time frame. There are so many videos on 3:35:35YouTube that will tell you use exactly 3:35:37these time frames and you'll find 3:35:39success. No, that's not what trading is 3:35:41about. Trading is about multiple time 3:35:45frame analysis. Right? And this is one 3:35:47of the biggest mistakes that most 3:35:49beginner traders make. They don't look 3:35:51at multiple time frames before they 3:35:54enter into a trade. And frankly, you are 3:35:57trading blindly if you're only 3:36:00considering one time frame before taking 3:36:02a trade. I want you to think about the 3:36:03last, let's say, 10 trades that you 3:36:05took. How many time frames did you look 3:36:07at before you entered into those trades?3:36:10What were you just looking at the five 3:36:12minute chart or the one minute chart and 3:36:13you entered and then ended up being a 3:36:15loser and you were like, uh, why was 3:36:16this a loser? I want you to ask 3:36:18yourself, be honest with yourself. Are 3:36:20you actually looking at multiple time 3:36:21frames? And if not, why not? And what 3:36:25we're looking for when we're reading 3:36:27multiple time frames is alignment.3:36:30Alignment. This is called multiple time 3:36:33frame alignment. Where multiple time 3:36:35frames are telling you the same thing,3:36:38right? They're all telling you what the 3:36:41stock is doing. They're not conflicting,3:36:43right? So alignment would be like five 3:36:45minute is uptrending, 15-minute is 3:36:48uptrending, hourly is uptrending, daily 3:36:50is bullish. That's alignment. Conflict 3:36:52would be like five minute is is in a 3:36:54downtrend, 15-minute is sideways, um 3:36:57daily is in an uptrend, hourly is 3:36:59sideways. Like that's not alignment.3:37:00That's conflict, right? And we're going 3:37:02to be looking at really specific 3:37:04examples of how this works. All right?3:37:07So, what I want you to focus on in this 3:37:09little example, in this exercise here,3:37:11because this concept is actually 3:37:13extremely simple. Looking at multiple 3:37:15time frames is really simple. And don't 3:37:17worry, I will tell you what time frames,3:37:19what multiple time frames I use in my 3:37:21trading every single day. That's a 3:37:22little bit later in the video. This is 3:37:25equally as important. I want you to look 3:37:27at the current time frame in each one of 3:37:29these examples. And what we're going to 3:37:31be doing is considering and asking 3:37:33ourselves, are we going to take this 3:37:36trade on the current time frame based on 3:37:38what the lower time frame is doing and 3:37:40based on what the higher time frame is 3:37:42doing. So let's look at this first 3:37:43example. What's the current time frame?3:37:44Well, it looks like we're in a very 3:37:46strong uptrend. We have a rising 20 MA 3:37:49under price and looks like we have like 3:37:50a buy setup retracement pattern. This 3:37:52looks bullish. It looks like we're we 3:37:54want to go long on the current time 3:37:56frame. So let's think about should we go 3:37:58long? What is the lower time frame 3:37:59doing? Well, the lower time frame is in 3:38:02a downtrend and looks bearish. Okay,3:38:05looking like it's actually going to 3:38:06drop. Declining 20. Higher time frame is 3:38:09essentially doing the same thing, right?3:38:11In a downtrend, declining 20 bearish.3:38:15Are we going to take this trade on the 3:38:16current time frame should be absolutely 3:38:19obvious. No, obviously not because the 3:38:21lower time frame is bearish and the 3:38:24higher time frame is bearish. Make 3:38:26sense? Easy enough. Let's move on. What 3:38:29about this situation? The current time 3:38:32frame, same exact thing. We're looking 3:38:34to go long for a buy setup retracement 3:38:36play. Strong uptrend. We want to go long 3:38:38and make money to the upside. Lower time 3:38:40frame looks good as well. Almost 3:38:42identical. Bullish uptrend looks good.3:38:45Higher time frame is bearish and in a 3:38:49downtrend. I want you to pause the 3:38:50video. Are we going to take this setup?3:38:54And the answer should be no. we're not 3:38:57going to take this setup. The, you know,3:38:59we always put more emphasis on what the 3:39:03higher time frame is doing. So in this 3:39:05case, the higher time frame is bearish.3:39:07If the higher time frame is bearish,3:39:09that's like the upward perspective,3:39:11right? That's like the top of the 3:39:12mountain is bearish, right? And then the 3:39:15bottom of the mountain is bullish. Are 3:39:17we going to take this trade? No. Right?3:39:19Because the higher time frame is just 3:39:21way more important than the lower time 3:39:22frames. This is what gives you the bias.3:39:24We always want to be trading in the 3:39:26direction of the higher time frame. All 3:39:29right, makes sense. Should be easy.3:39:30Higher time frames more important than 3:39:32lower time frames in terms of direction.3:39:35Next, we have the current time frame 3:39:37right here. Bullish looks higher. Great.3:39:40Lower time frame looks bullish. Higher 3:39:42uptrend, great. Higher time frame,3:39:44bullish, uptrend looks great. Perfect.3:39:47This is excellent. This is exactly what 3:39:49I want to see because the lower time 3:39:51frame is bullish in an uptrend. Current 3:39:53time frame is bullish in an uptrend.3:39:55Higher time frame is bullish and in an 3:39:56uptrend. Excellent. This is obvious.3:39:59Exactly what we want to see. This is 3:40:00multiple time frame alignment. Now let's 3:40:03look at this example. And this is going 3:40:04to be interesting. Current time frame 3:40:07looks good. Uptrend same exact, right?3:40:09We want to go long. Higher time frame 3:40:11looks good as well, right? You know,3:40:14uptrend bullish uptrend looks great,3:40:17right? Current time frame and higher 3:40:18time frame looks great. Remember, we put 3:40:20more emphasis on the higher time frame.3:40:22Everything's looking good. What is the 3:40:24lower time frame doing? Well, the lower 3:40:26time frame is bearish in a downtrend.3:40:29So, what do we do here? And you actually 3:40:32have two options. Your number one option 3:40:35is you could say, "Hey, I don't care 3:40:37about the lower time frame. The current 3:40:39time frame looks excellent. The higher 3:40:41time frame looks excellent. The old, you 3:40:43know, the longer term bias is on my 3:40:45side. I really like the quality of the 3:40:47setup. I don't care if the lower time 3:40:48frame is bearish because the current 3:40:51time frame and the higher time frame 3:40:52looks good. I'm taking the trade. That's 3:40:54option number one. Option number two,3:40:57you can be patient, maybe pass on the 3:41:00initial setup and wait for the lower 3:41:04time frame to turn bullish. Wait for 3:41:06this to uh um uh what's it called? Uh 3:41:10end the downtrend and begin an uptrend 3:41:12or wait for the 20 MA to start curling 3:41:14up. Right? You essentially wait for the 3:41:17the lower time frame to begin aligning 3:41:20or you uh you wait for the lower time 3:41:21frame to begin aligning with the current 3:41:23time frame with the higher time frame.3:41:24Jesus, the words mixed me up, but you 3:41:27guys get my point here, right? We wait 3:41:29for the lower time frame to begin 3:41:32looking bullish and that will give us 3:41:33our final confirmation to go long. So 3:41:37those are your two options in this case 3:41:38where the current time frame looks looks 3:41:40good, higher time frame looks good to go 3:41:42long, lower time frame is bearish, you 3:41:44could just take the trade anyway because 3:41:46you know you like the current and higher 3:41:48time frame or you wait for the lower 3:41:50time frame to turn bullish. Wait for the 3:41:5220 MA to begin rising, wait for the 3:41:54downtrend to end and for an uptrend to 3:41:57begin forming. Those are kind of your 3:41:59options. And this is the way I look at 3:42:00every single scenario, every single 3:42:03trade um in the markets. Excellent.3:42:05Let's go ahead and look at some reall 3:42:07life examples. And this was actually a 3:42:09trade that I took the other day or that 3:42:12I was considering taking the other day.3:42:14So let's look at this EOS on the 15 3:42:17minute time frame. All right. What do we 3:42:20have? We have a declining 20 period 3:42:21moving average. Looks good. We dropped,3:42:24we kind of retraced that drop. We moved 3:42:27down and then we began basing into the 3:42:29declining 20 MA on the on the 15minute 3:42:34chart. And we were gearing up for a 3:42:35breakdown. It looks like this wanted to 3:42:37break the lows of this base. That would 3:42:39be our entry. Stop loss above this 3:42:42pivot. It was looking good for a 3:42:43breakdown, right? I was actually 3:42:45considering this. Now, let's look at the 3:42:47daily time frame. What do we see on the 3:42:49daily? Well, the day before we had a,3:42:51you know, nice gap down, big move lower.3:42:53I actually made money on the EOSC this 3:42:55day. The next day, this is this day 3:42:57right here. So, this stat, uh, this 3:42:59setup is on this day right here. we gap 3:43:03down again and then we start, you know,3:43:05we attempt to move lower. Now, notice 3:43:07how we have the 200 period moving 3:43:09average acting as support. So, this is 3:43:13an example where the 15-minut time frame 3:43:16looks good to break down, looks good for 3:43:19a short, but the daily time frame is 3:43:21directly into the 200 period moving 3:43:24average, which is acting like support 3:43:26for this stock. And this is an example 3:43:28where we use multiple time frames.3:43:3115-minute looks good, but we have to 3:43:33check the higher time frame, which is 3:43:35the daily chart. And then we see that,3:43:38you know, this stock is into support.3:43:40So, what was the outcome of this trade?3:43:43Well, it didn't end up working. It 3:43:45actually ended up failing, right? It 3:43:47almost it basically triggered kind of 3:43:49triggered and then immediately failed 3:43:51and it would have hit your stop-loss.3:43:53But that trade could have been easily 3:43:56avoided by just looking at multiple time 3:44:00frames by looking at the current time 3:44:01frame and then looking at the larger 3:44:03time frame to see do we have support 3:44:05below. What is the overall trend on the 3:44:08larger time frame? Does it look good or 3:44:10not? Right? In this case, the overall 3:44:11trend was bearish, right? We had a gap 3:44:13down. We were continuing lower even on 3:44:15this day, but we had support at the 200.3:44:17So the setup ended up failing and I 3:44:20ended up avoiding this loss. Why?3:44:22because I looked at the higher time 3:44:24frame. I used multiple time frame 3:44:27analysis. Let's look at another example 3:44:28here. So, this stock actually gapped up 3:44:32on this day right here. Right? You could 3:44:34kind of see the 20 MA starting to curl 3:44:36under price. It looks like it's starting 3:44:39to form an uptrend, right? We have a 3:44:41low, high, low, high, low, high. Right?3:44:44We have an uptrend. And [snorts] then we 3:44:46have a kind of like a retracement buy 3:44:48setup here where we move up, we retrace.3:44:50We ended up actually gapping right here,3:44:53right? And I saw this um on this 3:44:55morning, right? I this this was like 3:44:57last week. So on the morning, I saw that 3:45:00we were opening at this price around 3:45:01$27. This was before the market actually 3:45:04opened. So this was the pre-market price 3:45:06that I was seeing for this stock. So 3:45:08what did I do? I went to the daily time 3:45:10frame and I checked, you know, does this 3:45:12stock have room to actually run? Where 3:45:15is the next resistance area if I decided 3:45:18to go long on this stock? And remember,3:45:20I'm a gap trader. So, as soon as I saw 3:45:22this gap up, you know, it's kind of 3:45:24clearing this little resistance here. I 3:45:26was interested in potentially going long 3:45:28on it. And I looked to the left and I 3:45:29saw, hey, we have a bunch of resistance 3:45:31here. This is the next resistance area.3:45:33And let's see how the trade ended up 3:45:35playing out. All right. And we ended up,3:45:39you know, moving higher. We we had that 3:45:41gap. We opened right here. A gap is an 3:45:43overnight change in price. So, you could 3:45:45literally see that there's a gap in 3:45:46price. Maybe I think this happened 3:45:48because of earnings or some news. That's 3:45:50irrelevant. I only really look at the 3:45:52price action, but we gapped up. I saw 3:45:54that we had room to run to the next 3:45:56resistance area, and that's exactly 3:45:57where we ended up kind of finishing off 3:45:59that uh that day's move. From there,3:46:02once we established there was a gap on 3:46:04the daily time frame, the gap had room 3:46:07to run to the next resistance area. We 3:46:09go to the smaller time frames, the uh in 3:46:12this case, the two-minut chart, right?3:46:15And we found a setup. We had a move up 3:46:17retracement and this is just a picture 3:46:20perfect buy setup. Picture perfect 3:46:22retracement pattern, right? 40 to 60%3:46:24retracement, multiple entry bars. Entry 3:46:27would have been over the highs of these 3:46:28dogee bars. Stop loss would be below 3:46:31this bottoming tail and we saw just an 3:46:33amazing move higher. And I actually 3:46:36teach the buy setup and this retracement 3:46:39pattern in my free 10 plus hour course.3:46:42It is genuinely better than most paid 3:46:44courses on the internet. I 100%3:46:46recommend that you watch it. It'll 3:46:47actually build the foundation for your 3:46:50trading. It is 10 plus hours of just 3:46:52pure sauce. Watch it and combine what 3:46:54you learn in my free education in my 3:46:57free course with everything that I teach 3:46:59on my YouTube channel. But hopefully you 3:47:01guys are kind of getting the idea here.3:47:02I don't want this video to be too long.3:47:04I kind of want this to be a rapid fire 3:47:06video for you to learn from. But 3:47:08hopefully this makes sense. We start off 3:47:10looking at the daily chart. We identify 3:47:12the gap, identify what the next 3:47:14resistance area is. It was a gap up 3:47:17above resistance. Love it. Then I went 3:47:18to the smaller time frames to find a 3:47:20potential entry. In this case right 3:47:22here, I found an entry on the intraday 3:47:25time frame. I checked the larger time 3:47:27frame to see if it looked good, to see 3:47:29what the trend was, to see if we had 3:47:31support beneath us, and we we ended up 3:47:34having support. and I ended up avoiding 3:47:35this trade and I avoided um losing money 3:47:38on this position because I checked 3:47:40multiple time frames. And this is kind 3:47:42of the system that you want to use. Now,3:47:44let's go ahead and cover what time 3:47:45frames I actually use for trading 3:47:48stocks. And right off the bat, I am 3:47:50always looking at the higher time frames 3:47:52for everything that I do. I'm always 3:47:55keeping an eye on the daily time frame 3:47:57and the hourly time frame for every 3:48:00single one of my trades. So, when the 3:48:01market first opens, I am primarily 3:48:03focusing on the 1 minute and the 3:48:05two-minute chart. And, you know, closer 3:48:08to 10:00 a.m., I'm definitely focusing 3:48:10on the five minute chart as well. Then,3:48:12from 10:00 a.m. to like 12:30 p.m., I'm 3:48:15focusing mainly on the 2-minut and the 5 3:48:18minute, primarily, really the five. And 3:48:19then, of course, a little bit of the 15.3:48:21As we move towards 12, 12:30, I'm more 3:48:25and more looking at the 15 minute time 3:48:27frame. And then from 12:30 to 4 p.m. I'm 3:48:30mainly looking at the five and the 15 3:48:31for my entries and for my setups. All 3:48:35right. And I do occasionally look at the 3:48:37one and the two-minute charts as well 3:48:39just for extra confirmation. And you 3:48:42know this is what I do. And I'm always 3:48:45looking at the daily and hourly. Right?3:48:46So it's in conjunction. It's not like 3:48:49only this time frame or only that time 3:48:51frame. We're looking at multiple time 3:48:53frames. And that's what gives me an edge 3:48:55compared to other traders. I'm really 3:48:56good at analyzing multiple time frames 3:48:59because every now and then you'll get a 3:49:00setup that looks amazing on the five,3:49:03amazing on the 15, even looks kind of 3:49:04good on the daily, but then the hourly 3:49:06will be into resistance, right? Or the 3:49:09opposite. Maybe the intraday time frames 3:49:12aren't that great. Maybe the five and 3:49:14the 15 are okay setups, but the hourly 3:49:18and daily chart have, you know, a 3:49:20fantastic setup where it was a high 3:49:23quality gap up or gap down. The hourly 3:49:26chart looks amazing, but the 15 and the 3:49:29five don't look as good. Sometimes I'll 3:49:31still take that setup um because of how 3:49:34good the higher time frames are. Does 3:49:37that make sense? So, it's really, you 3:49:39know, I'm always emphasizing the higher 3:49:41time frames and the current time frames.3:49:42All right. And don't get hung up on the 3:49:45exact time of day, right? It doesn't 3:49:47matter like if it's like 9:57,3:49:50you know, that's not like there's no 3:49:51like exact time where I transition to 3:49:53another time frame. It's kind of like 3:49:55flexible. I'm very free with my trading.3:49:57I'm kind of looking at all of them to be 3:49:58honest. In terms of swing trading, we're 3:50:00primarily looking at the hourly time 3:50:02frame, daily time frame, weekly time 3:50:04frame, or monthly time frame. Monthly 3:50:06time frames are a bit much, right? A lot 3:50:09of times you don't really need to look 3:50:10at the monthly. It's mainly hourly,3:50:12daily, weekly. If you find a setup off 3:50:15the weekly time frame, you want to go to 3:50:17the daily time frame to find a setup. If 3:50:20you find a setup on the daily time 3:50:21frame, you want to go to the hourly time 3:50:24frame to find a setup. Right? So, let's 3:50:26say you find a setup on a particular 3:50:28time frame, on a higher time frame. You 3:50:30can go to the smaller time frame to find 3:50:33an entry for that setup. And this will 3:50:36allow you to find potentially a better 3:50:39entry. And you could also even get a 3:50:41tighter stop-loss, right? So, let me 3:50:43kind of show you um an example of this.3:50:46I'm gonna kind of draw it out. Let's say 3:50:47you have like a nice little uptrend and 3:50:49you get a buy setup. And let's say this 3:50:51is the 15minut time frame. Maybe if you 3:50:54go to the five minute time frame right 3:50:57here, you get, you know, I don't know, a 3:51:00tighter stop where you can maybe put 3:51:02your stop here, entry there. But if you 3:51:05did it on the 15, your entry would be 3:51:06here, you know, does that make sense?3:51:08So, you're able to use a tighter stop um 3:51:10and as a result have a better reward to 3:51:13risk. This is not the best example. I'm 3:51:15kind of just drawing off the top of my 3:51:16head, but you guys get the point, right?3:51:18You see a setup, you can go to the 3:51:20smaller time frame to find an entry into 3:51:22that setup, find a stop-loss into that 3:51:25setup, and as a result, have a tighter 3:51:27spre,3:51:31right? Hopefully, this makes sense. So,3:51:32if sometimes if I see a really nice 3:51:34daily setup, I'll go to the hourly for 3:51:36my entry. I find a nice weekly setup,3:51:38I'll go to the daily for my entries. So,3:51:40you could play around with this. You 3:51:41could use multiple time frames and get 3:51:44creative with your entries. In summary,3:51:47guys, this concept is actually 3:51:48incredibly simple. Always look at 3:51:51multiple time frames. And this will 3:51:53allow you to filter out a lot of the 3:51:56lowquality trades that you're taking 3:51:58because I guarantee you're taking trades 3:52:00that look maybe amazing on the 15-minute 3:52:02time frame, but then when you look at 3:52:04the daily or the hourly, it doesn't look 3:52:06good at all. And maybe, you know, by 3:52:08using multiple time frames, that would 3:52:10save you from taking the trade and save 3:52:12you from losing money. Does that make 3:52:14sense? It's it's a really simple kind of 3:52:16concept, right? And these are the time 3:52:17frames that I use in my trading. And 3:52:20it's all about just using multiple time 3:52:22frame analysis and always looking for 3:52:24alignment. You always want, you know,3:52:26ideally you want to see this. You want 3:52:30most of your trades, 80% of your trades 3:52:32to look like this. Lower time frame is 3:52:34in sync. Current time frame is in sync.3:52:36Higher time frame is in sync. Everything 3:52:38looks good. There are multiple qualities 3:52:40that are converging together to make it 3:52:42a high probability setup. And you're 3:52:44probably going to make money most of the 3:52:46time trading this quality of a trade.3:52:48And the other setups you should be 3:52:50taking are like this where maybe the 3:52:52current time frame looks good, the 3:52:54higher time frame looks good, but the 3:52:55lower time frame isn't quite ready yet.3:52:57In that case, you could be patient and 3:52:58wait for it to set up. And 3:53:00realistically, guys, unless it's like a 3:53:03small scalp, you should never really be 3:53:05taking setups when the higher time frame 3:53:08is uh in conflict with the current time 3:53:10frame and the lower time frame. All 3:53:12right, today we are talking about 3:53:14support and resistance lines. And as 3:53:17traders, I'm sure you have heard plenty 3:53:20and seen plenty about support and 3:53:22resistance and how you could potentially 3:53:25use it to your advantage. However,3:53:28during this class, I'm going to be 3:53:30teaching you exactly how I use support 3:53:32and resistance and some of the theory 3:53:34that you need to understand before 3:53:36actually applying it to your trading.3:53:39Okay. So, what is actually support? What 3:53:42does it mean? So support can be defined 3:53:45as a price level or area or you could 3:53:48think of it as a price zone where a 3:53:51historical price action has shown that 3:53:54in that area there's way more demand 3:53:57than supply. So in other words in that 3:54:00area there are way more buyers than 3:54:03there are sellers. Okay? And when a 3:54:07stock actually hits support, you can 3:54:09either buy it or you can either look to,3:54:12you know, buy it or you can even look to 3:54:15short it, you know, using support. And 3:54:18we're going to be looking at both of 3:54:19those examples. So the key thing about 3:54:22support is that you and resistance, as a 3:54:25matter of fact, is that we have to make 3:54:28sure that price is actually retesting 3:54:31that support level. So looking at this,3:54:34we have one rally. Okay. And as we are 3:54:37dropping down, price actually retests 3:54:39this support and then rallies from there 3:54:43as well. Okay. So as soon as we have two 3:54:46tests of support where both you know 3:54:49both tests actually rallied from that 3:54:52support level then we can actually use 3:54:55and uh trust that support level. Okay.3:54:59So that's what we need. We need two 3:55:01tests of a support or resistance level 3:55:04before we can actually trust that it's 3:55:07actually serving as resistance or 3:55:09support. And this is an example of 3:55:12buying using support where a price level 3:55:14actually or price touches the support 3:55:16level you can look to purchase it.3:55:19Right? Obviously, this is a super basic 3:55:22understanding of it. You know, if it 3:55:24hits a support, we're going to buy.3:55:25there's obviously other uh strategies,3:55:28other factors that we're going to use as 3:55:30well um in order to justify actually 3:55:33buying it at support. But I think and I 3:55:36think the number one mistake people make 3:55:39using support and resistance levels is 3:55:41that they solely base their decisions,3:55:45their entries, their exits off support 3:55:47and resistance. And I think that's a 3:55:49mistake. I think using support, you 3:55:51know, you have to use support and 3:55:53resistance to your advantage, but that 3:55:55shouldn't be the only uh, you know,3:55:58indicators or the only factors in 3:56:00trading that you're looking at. And 3:56:01that's what traders do. They they tend 3:56:03to just use support and resistance to 3:56:05base their entries off of. You kind of 3:56:07have to use support and resistance with 3:56:10the other knowledge and skills that you 3:56:12possess in trading. And when you 3:56:14combine, you know, you know, the other 3:56:17strategies, you know, with support and 3:56:19resistance, that's when you can make uh,3:56:21you know, a lot more higher quality 3:56:23decisions. So, don't just use support 3:56:26and resistance. Use it alongside the 3:56:29other strategies you're going to learn 3:56:30in this course. Okay. So, this is one 3:56:33example where you could buy using 3:56:35support, where to retest the support,3:56:36you could look to purchase it. An 3:56:39[clears throat] example of actually 3:56:40shorting at support is let's say we have 3:56:42a you know huge drop and we start to 3:56:45kind of base kind of consolidate at this 3:56:48level. We can kind of think of the top 3:56:49of the base as resistance and the bottom 3:56:52of the base as support. And whenever,3:56:55you know, it actually breaks the support 3:56:57level, we could actually look to short 3:57:00it, right? And because breaking support 3:57:03suggests that there are now more sellers 3:57:05than buyers, right? Because during this 3:57:07support level, we could see that during,3:57:08you know, in that area, it keeps getting 3:57:11bought, right? Like once price touches 3:57:14that zone, it gets bought. But right 3:57:17when price decides that okay you know 3:57:19once it actually tears through that 3:57:21support it suggests that okay there are 3:57:23no more buyers left right the sellers 3:57:25are really dominating like there's way 3:57:27more sellers and buyers now in that zone 3:57:31so we're going to actually look to short 3:57:32it and make money as it continues to 3:57:35fall. Okay so you can either you know 3:57:38you could use support to either buy or 3:57:40short. In this case we're buying it when 3:57:42it retests the support. In this case,3:57:44we're shorting it when price uh, you 3:57:46know, goes through support. Okay? And 3:57:49I'm not saying that you should be buying 3:57:51whenever we do have a retest or shorting 3:57:53every time it breaks support. These are 3:57:55just two ways you can actually play 3:57:58support. Okay? And you might be 3:58:00thinking, okay, then how what you know 3:58:02when do we know when to short? How do we 3:58:04know when to buy? Well, that's when we 3:58:06combine the other strategies that we 3:58:07know in this course such as, you know,3:58:09such as the some of the skills we took 3:58:11from the breakout or breakdown or the 3:58:13buy setup or sell setup and the other 3:58:16knowledge that we've learned in this 3:58:18course, level two as well. Okay, so 3:58:21let's continue on and we're going to be 3:58:22talking about resistance. Okay, so 3:58:25resistance is a price level or area or 3:58:28zone where historical price action has 3:58:30indicated that there's actually way more 3:58:33supply than demand when price actually 3:58:36reaches that point. So in other words,3:58:38there are way more sellers 3:58:41at that point than buyers, right? And 3:58:45once again, you could either buy or 3:58:46short using resistance. So for example,3:58:49you could look to sell your position at 3:58:52resistance. Let's say you bought it down 3:58:53here. You could look to sell your, you 3:58:55know, you you bought it at support, you 3:58:58could look to sell it at resistance or 3:59:00let's say it hits a resistance level,3:59:02you could also look to short it, right?3:59:04And you have to make sure there's two 3:59:07tests, right? Price tested the 3:59:09resistance level twice before we can 3:59:12actually uh determine that it's uh it's 3:59:16a viable resistance level. Okay, hope 3:59:19that makes sense. And this is another 3:59:22way where we can, let's say we have a 3:59:24huge rally and then we begin to have a 3:59:25consolidation. The bottom of the 3:59:27consolidation could be looked at as 3:59:28support. The top of the consolidation 3:59:30could be looked at as resistance. And 3:59:32we're going to purchase it, right?3:59:34Purchase when price actually breaks the 3:59:38resistance level. Okay? Because it 3:59:40suggests that now there's way more 3:59:42buyers than sellers at that resistance 3:59:45point. Right? We had a lot of selling 3:59:47pressure when price hit that resistance 3:59:49before. But now that selling pressure 3:59:51has seemed to disappear. It's no longer 3:59:53there. And that's when we actually buy 3:59:56it because now we have confirmation that 3:59:58there are actually way more buyers than 4:00:00sellers. And you can kind of pair this 4:00:03right away using uh the breakout method.4:00:06Right? This is a breakout. We are 4:00:08playing above the consolidation. So you 4:00:10can kind of see how res, you know,4:00:11support and resistance can help you with 4:00:14your breakouts and breakdowns and how 4:00:16they kind of relate to one another.4:00:18Okay. Now looking at another example 4:00:22when let's say we actually have an 4:00:23uptrend,4:00:25right? So let's say we have a rally and 4:00:29then we have a pullback. That high the 4:00:32previous rally high right here is now 4:00:34going to serve as resistance. Right?4:00:38Okay. So now this is resistance.4:00:41Okay. And then let's say we you know 4:00:44from there we also continue we have a 4:00:46pullback right and then we break the 4:00:47resistance we continue to rally. Okay.4:00:50And we begin to actually pull back 4:00:52again. What we want to see is we want to 4:00:55see this prior resistance from here 4:00:58right this prior resistance now turn 4:01:01into this pullback's support. Right? So 4:01:05here the resistance level right this 4:01:07resistance level from this high is now 4:01:09turning into the support for this low 4:01:13right so this resistance is becoming 4:01:14this support now so this is really what 4:01:17we kind of want to see during um during 4:01:20uptrends okay so exactly like I 4:01:24mentioned this is this resistance level 4:01:25it turns into this pullback's support 4:01:29and during these retracements right like 4:01:31this pullback is technically called a 4:01:33retracement 4:01:35We want it to retrace 40 to 60% of the 4:01:39prior rally. Right? So we have this 4:01:40rally. We want this retracement to be 4:01:43you know we want it to retrace 40 to 60%4:01:47of this rally which it has. I mean this 4:01:49kind of retraced around I would say 4:01:50probably probably right around 50%.4:01:53Okay. And we want to see that 4:01:55retracement be between 40 to 60%. We 4:01:57don't want to see deep retracements. We 4:01:59also don't want to see super shallow 4:02:01retracements. Okay. And we kind of 4:02:03talked about that during the buy setup 4:02:04classes. Okay. And right and the whole 4:02:08idea of this turning you know this 4:02:10resistance now turning into support is 4:02:12that we want price to actually retrace 4:02:15to the prior resistance level which is 4:02:18now being considered as support. Right?4:02:21We want this res we want price to 4:02:23retrace to this resistance. And once it 4:02:26does retrace and respects that 4:02:28resistance it be it becomes support.4:02:30Same thing here. We have a rally, right?4:02:33We have this prior resistance and we 4:02:34have we retrace back to that prior 4:02:37resistance now. Therefore, making its 4:02:39support and we rally again. So, this is 4:02:42something we want to see this um during 4:02:45uptrends or downtrends, right? We want 4:02:47to see the prior we want to see 4:02:49retracements that retrace to the prior 4:02:52resistance.4:02:54Okay? Just like and we're going to 4:02:56examine a downtrend as well, right?4:02:58where we have, you know, we have a drop,4:03:01then we have a we kind of have a 4:03:03retracement here, a rally higher. And 4:03:06this support level,4:03:08right? This support level right here is 4:03:11now becoming, you know, this 4:03:14retracement's 4:03:16uh resistance level. So this support 4:03:18here right is now becoming resistance 4:03:21for when this stock you know after this 4:03:23drop it's going to become resistance for 4:03:27um for this retracement or this rally 4:03:30higher right so it's the same thing this 4:03:32support level becomes resistance here 4:03:34and we want price to retrace to the 4:03:37prior support level right this was the 4:03:39prior support level we want it to 4:03:40retrace to the prior support level here 4:03:43and now it will it's turning into 4:03:45resistance we also So like I said just 4:03:48like uh same thing we want a 40 to 60%4:03:50retracement right this this is a drop we 4:03:53want it to retrace 40 to 60% of this 4:03:56drop right straight to this new 4:03:59resistance level which was the prior 4:04:01support okay and it's basically the same 4:04:04idea this is what we want to see during 4:04:06a downtrend we want to see retracements 4:04:07to the prior support which is defined by 4:04:11you know this low right same thing here 4:04:14we have a drop right and then the 4:04:16retracement ment and the retracement it 4:04:19it goes right into the prior support 4:04:22level which is now resistance. Okay,4:04:24hope that makes sense and we are 4:04:27actually going to head into the 4:04:28conclusion here. So support and 4:04:30resistance is a very important tool and 4:04:33resource that you can use to benefit 4:04:36your trading, right? And what we should 4:04:39do is combine support and resistance 4:04:42with other strategies with the other 4:04:46information that we are learning in this 4:04:48course. And a huge mistake traders make 4:04:51is that they solely trade and rely 4:04:54support and resistance levels, right?4:04:56They they only use them, which is 4:04:58foolish, right? Support and resistance 4:05:00is incredibly useful when we actually 4:05:02pair it with other strategies. That's 4:05:05the key thing. That's the key here.4:05:07We're pairing it with other strategies.4:05:09We're not just using it by itself. Okay?4:05:12We should not be trading anything in a 4:05:15vacuum. We shouldn't be using one piece 4:05:17of information. We should be using a 4:05:19collection of different factors,4:05:21different strategies that we're learning 4:05:23in this course. And once you know using 4:05:26that collection of strategies, we're 4:05:28able to make a lot more higher quality 4:05:30decisions, a lot more higher quality 4:05:32trades. So, please use support and 4:05:34resistance to your advantage, but don't 4:05:36solely use it.4:05:38And you should be right combining 4:05:40support and resistance knowledge with 4:05:41other strategies for the best results.4:05:43And I'm going to include a video next 4:05:46actually looking at stocks in practice,4:05:48looking at real stocks, drawing support 4:05:50and resistance lines, and kind of trying 4:05:53to analyze what we learned during this 4:05:56presentation in theory. We're going to 4:05:57try to bring it into practical 4:05:59knowledge, okay? and into you know into 4:06:02um you know more practical application 4:06:05of support resistance. So that's in the 4:06:08next video. Okay and I will see you guys 4:06:11in the next class. Thank you. All 4:06:13righty. Let's dive in into more ways we 4:06:16could actually use support and 4:06:18resistance to our advantage and we're 4:06:20going to kind of get into the more 4:06:22practical elements of using support and 4:06:25resistance. So I've made a few examples 4:06:28in the slides and in the next class I'm 4:06:32actually going to be looking at real 4:06:34stocks and showing you how you could 4:06:36apply some of these support and 4:06:39resistance um you know teachings or this 4:06:42education that you've been seeing how we 4:06:43could actually apply it into real life 4:06:46charts. Okay. So key points, you know,4:06:49and specifically for, you know,4:06:51determining targets. In this case, we're 4:06:53going to be talking about how to use 4:06:54support and resistance to determine 4:06:55targets. Some key points is that, you 4:06:58know, determining targets and 4:07:00determining, you know, where you think a 4:07:02stock is going to rally to or where you 4:07:04think a stock is going to drop to. It's 4:07:07based completely off support and 4:07:09resistance, right? And if you're playing 4:07:12long, right? You're you're buying a 4:07:15stock. What you're going to want to do 4:07:17is check the next resistance level and 4:07:21use that as a potential target. Okay?4:07:24And if you're playing short, you're 4:07:26going to want to check the next support 4:07:28level and use that as a potential 4:07:32target. Right? So, our targets are 4:07:35simply based off looking at support and 4:07:38resistance. All right?4:07:40And what you know what you're going to 4:07:42want to really do is look at several 4:07:44different time frames, right? Because 4:07:46let's say you're trading off the five 4:07:48minute chart and you don't see any 4:07:51resistance above. Let's say you're 4:07:53playing long, right? And you don't see 4:07:55any resistance above on the five-minute 4:07:57chart. Well, what you should be doing is 4:08:00looking to high, you know, looking at 4:08:01the higher time frames and then seeing 4:08:04if there's resistance because you might 4:08:06not see resistance on the five minute 4:08:08chart, but if you go to, let's say, the 4:08:10hourly or the daily chart, you might end 4:08:13up seeing resistance and that's going to 4:08:17affect whether you're actually going to 4:08:20take that trade or not. Okay? So, like I 4:08:23said, we're [clears throat] going to be 4:08:24looking at higher time frames to check 4:08:26if there is support and resistance above 4:08:28or below. And you're going to in 4:08:31general, you're going to want to, you 4:08:32know, look at the higher time frame. So,4:08:35specifically the daily chart and the 4:08:38hourly chart. I wrote daily chart here,4:08:41but you could also check the hourly,4:08:43right? Um, so always check the daily 4:08:45chart first, right? Or you could check 4:08:47the hourly first and then the daily.4:08:49It's really kind of up to you. Um, but 4:08:52you're going to want to check the daily 4:08:53chart and determine if there's enough 4:08:56room for the [clears throat] stock to 4:08:59rally or drop to the next resistance or 4:09:01support level. Ultimately, when we're 4:09:04let's say we find a trade that we like 4:09:06and we're trying to figure out targets 4:09:08and we're looking, you know, let's say 4:09:10we're playing long and we're trying to 4:09:11figure out the next resistance level and 4:09:13so we take a look at the daily or hourly 4:09:16chart and we determine what the next 4:09:18resistance level is. We have to then ask 4:09:21ourselves based on, you know, the size 4:09:24of our stop-loss or the size of our 4:09:27risk, is the trade worth it? Is there 4:09:30actually that much room for the stock to 4:09:33go up before hitting resistance? Right?4:09:37Or is resistance literally directly 4:09:39above, right? And if resistance is 4:09:43directly above, well, that's when the 4:09:45stock, you know, assuming it hits 4:09:47resistance, that's when it's going to 4:09:48have a tough time, you know, continuing 4:09:51higher, right? Because if it's hitting 4:09:52resistance, you can think of that as 4:09:54kind of like a ceiling, right, for the 4:09:56stock. So, or if it's hitting support,4:09:59that's kind of like a floor for the 4:10:00stock. So, it's going to need, you know,4:10:03additional, I guess you can call it 4:10:05effort or a lot more additional buyers 4:10:07for it to actually rip through 4:10:09resistance, right? So, our goal is to 4:10:12make sure there's an ample enough uh 4:10:15room before the stock actually hits 4:10:18resistance, right? So, before there's 4:10:20actually enough uh you know, room for it 4:10:23to go up for us to make a profit before 4:10:25it hits our target or resistance. So,4:10:29just to reiterate, if you're playing 4:10:31long and you see that there's a 4:10:32resistance level directly above, you 4:10:34should reconsider taking that trade,4:10:36right? Or, you know, maybe you know,4:10:39rethink the trade a little bit because 4:10:41if there's resistance right above,4:10:43right, directly above, there's really 4:10:45not that much room for the stock to go 4:10:47up before it hits it, right? And that's 4:10:49going to, you know, that's going to uh 4:10:51decrease your reward to risk. And if 4:10:54you're playing short and you see that 4:10:55there's a support level directly below,4:10:57well, you're going to re want to 4:10:58reconsider taking the trade because if 4:11:01there's support directly below and 4:11:03there's not that much room for the stock 4:11:05to fall until it hits support, the your 4:11:09reward to risk might be affected. And 4:11:12this of course all depends on the actual 4:11:14uh what your actual stop-loss is. Okay?4:11:17And I kind of I went a lot more into 4:11:20detail with this in the risk management 4:11:22video. So definitely go back to that if 4:11:24you're having some confusion around 4:11:26this. But and another something else I 4:11:29want to talk about is what what what I 4:11:31want you guys to do is check for over 4:11:33overlapping candles. Overlapping candles 4:1